Attachment, ADC 488

Page 1

ADC 488

Republication of DLMS SDR Guidance

1. ORIGINATOR: 

a. Service/Agency: DLA Logistics Management Standards 

b. Originator: Ms. Ellen Hilert, DOD SDR System Administrator, 703-767-0676 (DSN 

427), e-mail: ellen.hilert@dla.mil. 

2. FUNCTIONAL AREA: Supply/SDR/DLMS

3. REFERENCES:

a. DOD 4000.25-M, DLMS, Volume 2, Chapter 17, Supply Discrepancy Reporting, 

available on the DLMS Publication Web at: 

http://www.dla.mil/j-6/dlmso/elibrary/manuals/dlms/v2.asp

b. DOD 4000.25-M, DLMS, Volume 2, Appendix 3, Supply Discrepancy Report 

Distribution (same URL as 3.a., above)

c. DOD 4000.25-M, DLMS, Volume 2, Appendix 4, Instructions for Preparation of 

Standard Form 364 (same URL as 3.a., above)

d. DLAI 4140.55, AR 735-11-2 SECNAVINST 4355.18A, AFJMAN 23-215, Reporting 

of Supply Discrepancies, dated August 6, 2001, available on the SDR Subcommittee Web page 

at: http://www.dla.mil/j-6/dlmso/Programs/Committees/Supply/supplySDR.asp

e. SDR Code Lists (printer friendly version) (same URL as 3.d., above)

f. DODI 4140.01, DoD Supply Chain Materiel Management Policy, dated December 16, 

2011

4. APPROVED CHANGES:

a. Overview: This approved change is provided to consolidate documentation associated 

with SDR guidance in preparation for re-issuance of the DLMS Manual as a Defense Logistics 

Manual (DLM). Additionally, this change: 

(1) deletes obsolete Appendix 3, SDR Distribution, and integrates SDR distribution 

rules within the chapter guidance,

(2) establishes a new DLMS Manual appendix for SDR-relevant data element code 

sets, and
Attachment, ADC 488

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(3) clarifies requirements for cancelation of the DLAI 4140.55, AR 735-11-2 

SECNAVINST 4355.18A, AFJMAN 23-215, Reporting of Supply Discrepancies, concurrent 

with re-issuance of the DLMS manual.

b. Background:

(1) The procedures associated with the SDR program are maintained in the DLMS 

manual (reference 3.a.). Many years ago it was planned that the redundant joint guidance 

(reference 3.d.) would be replaced or cancelled (with transition to the DLMS) when the

preponderance of SDR information exchange followed the DLMS standard. The joint guidance 

was no longer maintained after 2001; however, its cancellation was postponed pending the reissuance of the DLMS manual. Re-issuance of the DLMS manual was postponed pending 

issuance of the DODI 4140.01 (reference 3.f.). In the interim, updates to the procedures were 

primarily coordinated and published as Approved DLMS Changes.

(2) DODI 4140.01 (reference 3.f.) authorizes and directs the conversion of the DOD

issuances supporting the Defense Logistics Standard Systems (DLSS) into Defense Logistics 

Manuals (DLMs). DLMs are a relatively new category of publication that carries the same 

authority as a DOD manual. The instruction requires the publication of the DLMs in the Defense 

Logistics Agency (DLA) publication system (DLAPS) within 180 days of the DODI 4140.01 

publication, after which time those DOD issuances shall be removed (cancelled) from the DOD 

Directives system. The joint SDR guidance was authorized as one of the Defense Logistics 

Standard Systems (DLSS), but must be cancelled independently, concurrent with the re-issuance 

of the DLMS due to its status as a joint instruction/regulation/manual (hereafter referred to as 

joint SDR guidance). 

(3) The joint guidance for SDR processing published three data elements with 

specific code sets to support SDR processing by Standard Form (SF) 364, Report of 

Discrepancy. The guidance included separate enclosures for each of these: Discrepancy Code, 

Disposition Status/Reply Code, and Discrepancy Action Code. With the transition to DLMS, 

these data elements were entered into the Logistics Data Resources Management System 

(LOGDRMS). It was intended that the LOGDRMS dictionary would provide the required 

visibility for the data element code sets. However, because the dictionary does not provide a 

printer friendly option and is not widely known, a consolidated SDR Code List (reference 3.e.) 

was prepared, and is maintained on the SDR Subcommittee Web page. Two additional data 

elements, Document Type Code and Disposition Services Document Type Code, were included 

in the consolidated list. With the re-issuance of the DLMS guidance, a new appendix is being 

created to formally publish the SDR-related code sets. 

(4) The joint SDR guidance contained an SDR distribution enclosure to provide

addresses and contact information relevant to SDR action activities. This type of information 

was perpetuated to the DLMS manual as an appendix. However, the DLMS process relies on 

transaction/email exchange for SDRs and prohibits the use of hard-copy SDRs in most situations. 

Physical address information is rarely required for submission of SDRs. With the re-issuance of 

the DLMS manual, specific address and communication information is being removed from the 

appendix. This is consistent with other types of contact information that were previously 

published in the DLSS manuals but have been removed over time (some replaced by free 
Attachment, ADC 488

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standing documents hosted on the DLMS Web Site.) If continued consolidation and publication 

of this SDR action activity contact/address information is required, alternative approaches will 

be discussed.

c. Approved Change In Detail: There are no substantive changes to SDR procedures 

identified in this ADC. 

(1) Cancel the joint SDR guidance (reference 3.d.) concurrent with the reissuance of

DLM 4000.25, Volume 2.

(2) Revise DLMS manual SDR guidance for publication of the DLM. This includes 

administrative updates for formatting consistent with the DLMS DLM and integration of 

Approved DLMS Changes (ADCs) issued since the last manual change publication. Outstanding 

Proposed DLMS Changes (PDCs) are not reflected in this document; these will be incorporated 

upon release of the corresponding ADC. Note that the actual chapter and appendix numbers may 

differ upon formal publication. Administrative revisions have been incorporated to correct 

terminology, office name changes, and grammar. Obsolete information has been corrected 

where identified and coordinated with the applicable parties. This includes removal of 

applicability of SDR procedures for personal property shipments with packaging discrepancies

and SDR distribution to Military Surface Deployment and Distribution Command (SDDC). 

Clarification to procedures has also been included with no change to the original intent is 

required. Significant revisions associated with this change are identified in red, bold italics.

(a) Updated Chapter 17, Supply Discrepancy Reporting, is provided at Enclosure 1. 

(b) Updated Appendix 4, Instructions for Preparation of Standard Form 364, is 

provided at Enclosure 2.

(c) New Appendix 3, Supply Discrepancy Report (SDR) Relevant Data Elements, is 

provided at Enclosure 3. This is a replacement for the existing Appendix 3 containing SDR 

distribution rules and action activity contact/address information. This new DLM appendix 

identifies primary SDR data elements and applicable code values:

• Shipping, Packaging, and Storage Discrepancy Code, 

• SDR Requested Action Code,

• Discrepancy Status or Disposition (Reply) Code, 

• Discrepancy Report Document Type Code, and 

• DLA Disposition Services SDR Type Code. 

(3) Delete Appendix 3, SDR Distribution. General distribution guidance has been 

updated to reflect current procedures and has been incorporated in Chapter 17. Specific 

addresses and contact information for distribution of hard copy SDRs are no longer included in 

the DLMS guidance. SDR Committee representatives may contact the SDR Administrator to 

discuss alternatives for maintaining distribution addresses and contact information if still 

considered relevant. 

d. Alternatives: Not identified. The updated guidance is required for the reissuance of the 

DLMS manual.
Attachment, ADC 488

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e. Comment Resolution: Refer to Enclosure 4 for comments received in response to PDC 

506 staffing.

5. REASON FOR CHANGE: Dissemination of this change provides Components an 

opportunity to review the consolidated/updated SDR guidance and clarifies the timing for the 

impending cancellation of the joint SDR guidance under reference 3.d.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Provides recent SDR publication changes in context for final review prior 

to reissuance of the DLMS manual as a DLM. The new appendix for data elements provides a 

formal document for visibility of authorized code values and easy reference.

b. Disadvantages: None identified.

7. IMPACT:

a. Publication: DOD Components may need to coordinate with their internal publications 

offices regarding the cancellation of the joint SDR guidance (reference 3.d.). 

b. DLMS Data Elements: 

(1) There are new data elements. 

(2) Enclosure 3 contains minor revisions to the text definition associated with existing 

code values for capitalization, punctuation, and to spell out some lesser known acronyms. 

(a) Revise text associated with the existing reply code as shown to correct an 

administrative error.

936 Transaction rejected. SDR processing suspended. Request DoD WebSDR provide an 

information copy of the original report.

(b) Revise text associated with existing discrepancy codes as shown.

 D4 Receiving report/Materiel Inspection and Receiving Report, DD 250 (or equivalent) 

omitted

 S9 Incomplete sets/kits/outfits. Do not use to report cannibalization of Supply System 

Responsibility Item (SSRI), Components Of End Item (COEI), or Basic Issue Item (BII). See 

Discrepancy Code C4.

c. Automated Information Systems (AIS): This change is administrative and does not 

impact AIS other than SDR code text per Enclosure 3.
Attachment, ADC 488

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d. DLA Distribution: The two paragraphs directly below were moved to Chapter 17 from

the Appendix 4 guidance for completion of the SF 364 because Distribution Depots no longer 

prepare hard copy SDRs. The PDC 506 contained staffing notes for DLA Distribution asking for 

review of the guidance for potential update as the wording may no longer be accurate.

(1) Paragraph C17.3.2.8.2. Packaging Discrepancies Noted at DLA Distribution 

Depots. To ensure proper billing, indicate if the materiel is a major item, i.e., ships, aircraft, 

missiles, ammunition, vehicles, etc., or secondary item, i.e., any item that supports a major item 

such as reparables, consumables, assemblies, etc. Distribution Depots shall include projected or 

actual costs for labor and repackaging materiels. If actual, indicate the date corrective action was 

completed. 

(2) Paragraph C17.3.12.4.3. Packaging Discrepancies Noted at a Distribution Depot. 

The ICP shall annotate the SDR to indicate that distribution depot repackaging is approved or not 

approved. If the ICP authorizes corrective action, the SDR will also show the appropriate 

funding/ authorization document, e.g., job order number, Military Interdepartmental Purchase 

Request (MIPR) number, or SF 1080, to which the distribution depot may charge the corrective 

action costs. After completing corrective action, the distribution depot will annotate the actual 

cost of the work performed, note the date completed, and forward a copy to the ICP for closeout. 
Enclosure 1, ADC 488

Page 1

Enclosure 1, Chapter 17, Supply Discrepancy Reporting

C17. CHAPTER 17

SUPPLY DISCREPANCY REPORTING1

C17.1 GENERAL

C17.1.1. Purpose. This chapter establishes information requirements for reporting and processing of 

discrepancy reports under the supply discrepancy report (SDR) Program. The SDR is a tool used to report 

shipping or packaging discrepancies attributable to the responsibility of the shipper, (including U.S. 

Government sources and contractors/manufacturers/vendors) and to provide appropriate responses and 

resolution, including financial action when appropriate. The purpose of the SDR exchange is to determine the 

cause of such discrepancies, effect corrective action, and prevent recurrence.

C17.1.2. Standard SDR Transactions. Under DLMS, the SDR shall be considered a common logistics 

information exchange to be integrated with transaction processing through DAAS. The DoD approved standard 

for electronic transmission of SDR transactions is prescribed by the DLMS Supplement using an ASC X12-

compliant variable-length transaction format. Multiple DLMS Supplements are provided to support different 

SDR related functions. The DLMS 842A/W, Standard SDR, shall be employed for transactional exchange of 

initial reports and associated follow-on actions. The DLMS 842A/R, DoD SDR Reply, shall be employed for 

transactional exchange of the SDR reply by the action point. The DLMS Supplements for SDRs are available 

via the Implementation Convention/DLMS Supplement page of the DLA Logistics Management Standards 

Website.

C17.1.3. DoD WebSDR. The DoD WebSDR supports DLMS implementation via a DLA Transaction 

Services-maintained application, that enables SDR transaction exchange; provides a web-based entry method to 

assist users who are not supported by a Component DLMS-compliant SDR application; and provides visibility 

of SDRs for research and trend analysis via management report/query capability. The term “DoD WebSDR” 

(or “WebSDR”) refers to both the overall business process and supporting automation, including both direct 

web-input and transaction exchange.

C17.1.3.1. The DoD WebSDR application automates the Standard Form (SF) 364 SDR paper form 

facilitating the DoD standard transactional exchange described above. It brings the SDR into an integrated 

transactional environment, supporting both direct input (under Component business rules) and transaction 

exchange originating within Component applications The WebSDR system facilitates communication and 

interoperability between U.S. Military and Federal Agencies and the International Logistics Control Office 

(ILCO) on behalf of the Security Assistance customer. It controls routing of web submissions and logistics 

transactions according to business rules. It supports information exchange between the customer, the ICP/IMM, 

the shipper, and other interested parties. It encompasses new report submission, correction/modification, 

cancellation, follow-up, requests for reconsideration, and forwarding of SDR replies (including interim 

responses, additional information requests, and resolution responses), in addition to the capture of report and 

response management statistics. 

 1 Chapter 17 supersedes and replaces Joint Publication DLAI 4140.55/AR 735-11-2/SECNAVINST 4355.18A/AFJMAN 23-215, 

Reporting of Supply Discrepancies, August 6, 2001.
Enclosure 1, ADC 488

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C17.1.3.2. DoD WebSDR shall provide an automated process for tracking SDR response 

information. Data collected shall enable the Department of Defense to identify trends, establish volume and 

dollar values of SDRs, bring management attention to problems with shipping activities as necessary, and 

improve the requisitioning and distribution process within logistics operations. This provides an effective 

means to report, resolve, and measure discrepancies related to pipeline performance. Ultimately, the goal is to 

incorporate SDR metrics into other logistics response measurements in support of perfect order fulfillment. 

C17.1.3.3. The DoD WebSDR process reduces manual SDR form creation and eliminates dual entry 

where multiple Component systems are used. The DoD requirement is that paper submission of SDRs and nonDLMS compliant SDR applications will be phased out with migration to DLMS. By exception, until electronic 

reporting under DLMS is universally available, SDRs and associated responses may be reported via hard-copy 

SF 364, ROD, non-DLMS applications, email, through customer service help lines (e.g. the DLA Customer 

Interaction Center, dlacontactcenter@dla.mil) 1-877-352-2255 (1-877-DLA-CALL)), or any other manner 

acceptable to the submitter and recipient. All manner of reporting must meet the criteria described in this 

publication. 

C17.1.3.4. Access for DoD WebSDR input and management reports requires submission of a 

System Access Request (SAR) available from the DAAS home page at: 

https://www.transactionservices.dla.mil/daashome/homepage.asp. DoD WebSDR training is available on the 

DLA Logistics Management Standards Website.

C17.1.3.5. DoD Components with an established interface with DoD WebSDR shall designate 

primary and alternate representatives for the Component SDR application to DLA Transaction Services. These 

representatives will be notified via email when transactions fail during WebSDR processing due to failure to 

meet minimum format/content requirements for processing. Components shall provide name, telephone, and 

email address to the DoD SDR System Administrator and DLA Transaction Services WebSDR Program 

Manager.

C17.1.4. DLMS Subcommittees. The DoD Component members of the SDR Subcommittees (U.S. and 

Security Assistance) of the DoD Supply Process Review Committee are identified on the SDR Subcommittee 

page of the DLA Logistics Management Standards Website. 

C17.1.5. Applicability. These SDR procedures are applicable to the DoD Components, participating 

Federal Agencies, and other external organization elements as defined in Volume 1, Chapter 1. This includes 

shipments made from working capital funds (WCF) and non-WCF funded activities, Security Assistance

shipments made under the International Logistics Program, personal property shipments, and shipments 

received from commercial sources. By agreement, contractors receiving U.S. Government furnished property 

(GFP) under MILSTRIP procedures shall comply with U.S. Government SDR procedures provided herein. 

Discrepancies related to GFP that do not meet minimum dollar value criteria in paragraph C17.3.2., may be 

reported for information only, as a means of notifying the shipper or Inventory Control Point/Integrated 

Materiel Manager (ICP/IMM) of the discrepant condition.

C17.1.6. Exclusions. The following types of discrepancies are excluded from the provisions of this 

publication:

C17.1.6.1. Discrepancies found while materiel is in storage. Two exceptions to this exclusion are: 

1) short shipment and wrong item discrepancies discovered upon opening a sealed vendor pack may be reported 

by U.S. Government customers only, and 2) materiel in storage in a sealed vendor’s pack that is later discovered
Enclosure 1, ADC 488

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to have been shipped with discrepancies relating to Item unique item identification (IUID) data. These may be 

reported as SDRs and are not subject to submission timeframes. Refer to IUID discrepancies below. 

C17.1.6.2. Discrepancies involving local deliveries to, or returns from, internal or satellite activities. 

This exclusion is not applicable to on-site distribution depot shipments. 

C17.1.6.3. Discrepancies involving shipments of privately-owned vehicles.

C17.1.6.4. Discrepancies involving shipments on requisitions or purchase orders from personnel 

services activities citing non-appropriated funds.

C17.1.6.5. Transportation discrepancies covered by DTR 4500.9-R, Defense Transportation 

Regulation, Part II, Cargo Movement, Chapter 210, Transportation Discrepancy Report (TDR), except as 

specifically permitted under Security Assistance procedures in this chapter.

C17.1.6.6. Product quality deficiencies to the extent covered by Joint DLAR 4155.24 /AR 702-

7/SECNAVINST 4855.5B/ AFR 74-6l, except as specifically permitted under Security Assistance procedures in 

this chapter.

C17.1.6.7. Discrepancies involving personal property shipments, with the exception of packaging 

discrepancies relative to personal property.

C17.1.6.8. Billing discrepancies, except as specifically permitted under Security Assistance

procedures in this chapter. Price verifications and/or challenges are not reportable on an SDR.

C17.1.7. Types of Discrepancies

C17.1.7.1. Supply Discrepancy. Supply discrepancy is a general term used to describe any variation 

in goods received from data shown on any authorized shipping document that is not the result of a 

transportation discrepancy or product quality deficiency. Supply discrepancies include both shipping and 

packaging discrepancies.

C17.1.7.1.1. Shipping (Item) Discrepancy. A shipping discrepancy is any variation in quantity 

or condition of goods received from what is shown on the authorized shipping documents, to include incorrect 

or misdirected materiel, receipts of cancelled requirements, and/or improper or inadequate technical or 

supply/shipping documentation, that is not the result of a transportation error or product quality deficiency. 

Discrepancies involving IUID are reportable under shipping discrepancy criteria.

C17.1.7.1.2. Packaging Discrepancy. A packaging discrepancy is any unsatisfactory condition 

due to improper or inadequate packaging (including preservation, packing, marking, or utilization) that causes 

the item, shipment, or package to become vulnerable to loss, delay, damage, or unnecessary expense to the U. S. 

Government, such as excessive packing. Discrepancies involving passive radio frequency identification 

(pRFID) are reportable under packaging discrepancy criteria.

C17.1.7.2. Transportation Discrepancy. A transportation discrepancy is any variation in quantity or 

condition of materiel received from that shown in the piece count by type of pack on the bill of lading or 

governing transportation document and other deficiencies in transportation when discrepant materiel is not 

involved. These discrepancies involve motor, air, water, rail, and small package commercial carriers (excludes 

USPS shipments that are lost or damaged). Follow TDR policy found in the Defense Transportation 
Enclosure 1, ADC 488

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Regulation, Part II, Cargo Movement (DTR 4500.9-R). TDRs are entered and distributed under the Electronic 

Transportation Acquisition (ETA) system at https://eta.sddc.army.mil/.

C17.1.7.3. Product Quality Deficiency. A product quality deficiency is a defective or nonconforming condition that limits or prohibits the item from fulfilling its intended purpose. These include 

deficiencies in design, specification, materiel, manufacturing, and workmanship. These are reportable on an 

SDR only by a Security Assistance customer. All others follow PQDR policy found in DLAR 4155.24/AR 

702-7/SECNAVINST 4855.5B, AFR 74-6 Product Quality Deficiency Report Program. Quality deficiencies 

reported via SDR shall be investigated within the ICP/IMM under procedures associated with Product Quality 

Deficiency Reports. PQDR resolution provided via SDR reply to the submitting ILCO shall identify the 

associated PQDR record control number (RCN) as a cross-reference to the PQDR identification used by the 

ICP/IMM.

C17.1.7.4. Billing Discrepancy. Billing discrepancies are those discrepancies related to duplicate or 

multiple billing per individual shipment, or a single billing with no ship line, which are reportable to the ILCO 

on an SDR by Security Assistance customers only. Within U.S. Government channels, the billing discrepancy 

shall be processed in accordance with MILSBILLS procedures in DLM 4000.25, Volume 4, Finance, Chapter 4. 

This means the ILCO shall convert the discrepancy to the appropriate DLMS 812R, Request for Adjustment of 

Non-Fuel Billing, MILSBILLS DIC FAE with appropriate Billing Advice Code.

C17.1.7.5. Financial Discrepancies. Financial discrepancies are those discrepancies related to 

administrative and accessorial charges. The ILCO, ICP/IMM, or GSA shall forward to Defense Finance & 

Accounting Service Indianapolis (DFAS-IN), Security Assistance Accounting Customer Accounting Branch 

for processing all financial discrepancies received directly from a Security Assistance purchaser. Responses to 

these will be returned to the ILCO. Only financial discrepancies related to Security Assistance purchases are 

reportable on an SDR.

C17.1.7.6. Military Personal Property Shipments. This category includes both shipping and

packaging discrepancies associated with the movement/storage of household goods under the DoD Personal 

Property Shipment and Storage Program. Any discrepancies related to personal property shipment shall be 

referred to Military Surface Deployment and Distribution Command (SDDC) Personal Property at: 

USARMY.Scott.SDDC.mbx.omb-for-pp-ops@mail.mil or USARMY.Scott.SDDC.mbx-omb-for-ppquality@mail.mil. 

C17.2. POLICY

C17.2.1. Use of SDR. The DoD Components shall use the SDR to report shipping or packaging 

discrepancies attributable to the responsibility of the shipper (including contractors/manufacturers or vendors) 

and to provide appropriate responses. The purposes of this exchange are to determine the cause of such 

discrepancies, effect corrective action, and prevent recurrence.

C17.2.2. Operations Security (OPSEC) Applicability. Due to an identified OPSEC requirement, SDRs 

have been designated as controlled unclassified information (CUI) by the DLA Headquarters, and must be 

identified as “For Official Use Only (FOUO).” Handling and electronic transmission of SDRs must comply 

with DoD rules for this level of sensitive unclassified information, to include proper labeling and protection. 

DLA has further directed encryption of all SDR email transmissions. This requirement has been levied on the 

DoD WebSDR and impacts all participating DoD Components.
Enclosure 1, ADC 488

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C17.2.2.1. In order to receive encrypted e-mail, individual and group e-mail accounts must have 

their associated e-mail certificate registered at DLA Transaction Services. SDRs directed to e-mail accounts 

that do not have a registered certificate will be significantly abridged to display minimal information, thereby 

allowing the SDR to be transmitted in an unprotected environment.

C17.2.2.2. All action activities using e-mail SDRs must register their certificate, so that all 

information is available for SDR resolution. For low volume customers relying on e-mail SDRs, especially 

those supported by third party direct WebSDR input, registration is encouraged, but not required. These users 

will receive an abridged SDR reply that will provide disposition instructions and financial action, without the 

accompanying shipment detail.

C17.2.2.3. Unencrypted e-mails with minimal shipment information will include instructions for 

certificate registration and access to DoD WebSDR. Full WebSDR data content will be available to authorized 

users of DoD WebSDR. Refer to DAAS SDR processing for further details in the abridged SDR procedures 

and content.

C17.2.2.4. SDR management reports shall be distributed only via e-mail if the corresponding 

certificate has been signed.

C17.2.3. Documentation Maintenance. The SF364 (or the electronic version DLMS 842A/W) and the 

action activity’s response (or electronic DLMS 842A/R) shall be used to support adjustments to inventory and 

financial accounting records and shall be maintained as required.

C17.2.4. Receivers of discrepant materiel shall use the SDR to:

C17.2.4.1. Report shipping discrepancies, packaging discrepancies, and discrepancies or non-receipt 

of United States Postal Service (USPS) shipments.

C17.2.4.2. Modify, cancel, or follow-up on a previously submitted report.

C17.2.4.3. Request reconsideration of a response.

C17.2.4.4. Security Assistance customers may use SDRs to contest the decision stated in a 

reconsideration response.

C17.2.4.5. Provide information copies of the report to interested parties.

C17.2.5. Responsible action activities as identified in this chapter shall use SDRs to:

C17.2.5.1. Notify the report initiator of interim status or resolution of the SDR.

C17.2.5.2. Request additional information on incomplete submissions.

C17.2.5.3. Reroute/forward the SDR to the appropriate party.

C17.2.5.4. Forward recommendations to the source of supply or other designated activity for 

determination of financial resolution or materiel disposition.

C17.2.5.5. Provide information copies of the response to interested parties.
Enclosure 1, ADC 488

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C17.2.6. Non-Receipt of Shipments. Non-receipts, shipped by traceable means such as Government or 

Commercial Bill of Lading, shall not be reported using the SDR, unless the non-receipt is for other than a 

transportation discrepancy, or for damaged items shipped via modes other than USPS. SDRs shall not be 

submitted for non-receipt of shipments made by traceable USPS registered, insured, or certified mail until 

appropriate tracer action has been completed. If tracer action results confirm non-receipt, then submit an SDR 

and include results of the tracer action. Customers without automated access to in transit visibility information 

should contact the ICP/storage activity to determine which shipments are traceable. (Not applicable to Security 

Assistance customers.)

C17.2.7. Interface with Other Materiel Management Functions. Under DLMS, discrepancy processing 

may be used to trigger other standard materiel management functions.

C17.2.7.1. IMMs shall use the SDR response to establish a due-in record for return of discrepant 

materiel under Chapter 12 of this volume. ICPs/IMMs shall use the prepositioned materiel receipt (PMR) to 

advise storage activities to which a return is directed using MILSTRAP procedures for the DLMS 527D, DueIn/Advance Receipt/Due Verification. Refer to paragraph C11.19., this volume, for additional guidance.

C17.2.7.2. DLMS capable activities returning discrepant materiel shall prepare shipment status for 

materiel returns using the DLMS 856R, Shipment Status Materiel Returns, under paragraph C11.19.

C17.2.8. Discrepancy Reports Relating to Interchangeability/Substitutability (I&S) or Quantity Unit Pack 

(QUP) Issues. Incorrect item SDRs shall not be submitted for authorized substitution. The DoD Components 

and participating Agencies (e.g., GSA), shall follow the policy of automatic shipment of an item, unless the 

requisition contains an appropriate requisition advice code in accordance with Chapter 4, limiting the request to

a specific item. Therefore, incorrect item SDRs shall not be submitted for authorized substitutions. Similarly, 

quantities may be adjusted to the quantity unit pack, unless restricted by the appropriate advice code in the 

customer requisition. Such adjustments resulting in quantity variance are not reportable as discrepant.

C17.2.9. Responsibility for Costs Incurred Due to Discrepancies in Returned Materiel. U.S. Government 

activities returning materiel are cautioned that the returning activity may be held responsible for costs incurred 

by the receiving activity when discrepancies are reported and validated in accordance with this publication. 

This includes returns made in violation of prescribed procedures, returns exhibiting packaging discrepancies, 

and returns of reparable items unaccompanied by required technical data. Recoupment action by the ICP 

against the initiator may include all cost reimbursable actions performed by the receiving activity such as 

repackaging, marking, and disposal.

C17.2.10. Multiple Requisitions. Multiple requisitions received under a consolidated shipment cannot be 

combined for discrepancy reporting purposes. Individual SDRs must be submitted for each discrepant 

requisition received in the shipment. An exception to this is authorized for consolidation and containerization 

points (CCP)/transshippers. Refer to guidance for CCP/transshipper-originated SDRs below. When both item 

discrepancies and packaging discrepancies are noted on the same shipment, both types of discrepancy shall be 

included on the same report.

C17.2.11. Government Furnished Materiel (GFM). By agreement, contractors receiving GFM shall 

comply with U.S. Government SDR procedures provided herein. Discrepancies related to GFM which do not 

meet minimum dollar value criteria below, may be reported for information only, as a means of notifying the 

shipper/IMM of the discrepant condition.
Enclosure 1, ADC 488

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C17.3. PROCEDURES

C17.3.1. Original Submission of SDR

C17.3.1.1. Discrepancy Identification. The receiving activity, or transshipment activity noting 

packaging deficiencies on shipments in transit, shall prepare an SDR when one or more of the conditions 

described under reporting criteria exist. 

C17.3.1.1.1. Pending improved processing techniques, it is required that DLMS SDRs identify 

the type of SDR using the Discrepancy Report Document Type Code (Appendix 3). Within the context of SDR 

processing, this data element is known as the SDR Document Type Code. This is a one position code used to 

describe the type of discrepant report and the type of shipment involved, e.g., depot shipment to the customer = 

Type 7; direct vendor shipment to the customer = Type 6.

C17.3.1.1.2. Identify the discrepancy using the Shipping, Packaging, and Storage Discrepancy 

Code (Appendix 3). Within the context of SDRs this data element is known as the SDR Discrepancy Code. 

Use up to three different codes to describe the discrepancy. If no code exists to adequately describe the 

discrepancy, select Code Z1 and use a clear-text description. The goal of the initial SDR submission is to 

provide as much relevant information as possible to the action activity, including clarifying remarks to 

supplement discrepancy codes, so that they can take timely action to correct the problem and provide a timely 

response and disposition to the customer.

C17.3.1.2. Shipment Information. SDRs must contain a document number. Identify the original 

requisition document number when known; otherwise a constructed document number is required. DoD 

requisitioners reporting discrepant shipments may only use a constructed document number for selected 

discrepancies as discussed below. A constructed document number identifying the receiving distribution depot

is required for depot receipts reported electronically, including new procurement receipts. A constructed 

document number may also be prepared by a transshipper based upon the CCP or port DoDAAC. Additional 

information, such as transportation numbers (TCN, bill of lading number, etc.) or procurement information 

(procurement instrument number, line item number, vendor shipment number) shall be provided in accordance 

with the DLMS transaction format/SF 364. When reporting new procurement receipts, the distribution depot

shall cite a “pseudo shipment number,” equivalent to that cited on the receipt, when the actual vendor shipment 

number is not available from shipping documentation. The pseudo shipment number shall be constructed to 

identify the receiving depot and a constant 01 (that is, the serial number will not be incremented; therefore, the 

pseudo shipment number will not be unique). In order to systematically identify pseudo shipment numbers the 

third position must be numeric (vendor assigned shipments use a three digit alpha prefix to identify the vendor). 

For example, pseudo shipment numbers prepared by Distribution Depot San Joaquin, California (DDJC), will 

be reported as DD1JC01.
Enclosure 1, ADC 488

Page 8

C17.3.1.3. Requested Action

C17.3.1.3.1. The SDR originator must indicate what action has been taken concerning the 

discrepant materiel and/or the desired response from the responsible action activity. Identify the action code

using the SDR Requested Action Code (Appendix 3). Within the context of SDR processing, this data 

element is known as the Action Code. If no code exists to adequately describe the action taken or requested 

disposition, select Code 1Z and use a clear-text description.

C17.3.1.3.2. When an SDR is submitted using Action Code 1H, “No Action Required, 

Information Only,” the SDR must be processed to verify the discrepancy does not require further action. SDRs 

with Action Code 3B, “Discrepancy Reported for Corrective Action and Trend Analysis. No Reply Required.”

must be reviewed to determine the appropriate corrective action to prevent recurrence. A reply transaction from 

the action activity is not required, for Action Codes 1H or 3B, but when provided, it shall be accepted by the 

customer application. Systematically, this may be interpreted to mean that customer applications may autoclose these SDRs, but must allow them to re-open automatically to process a reply transaction if one is 

provided. A non-significant reply e.g. indicating acknowledgment of the SDR, may be dropped or posted, but 

shall not require further attention.

C17.3.1.4. Shipping Documentation. Retain shipping and associated documentation to provide a 

copy if requested. Do not mail hard-copy documentation if data is otherwise accessible to the responsible 

action activity. Where relevant to the discrepancy, shipping documentation may be provided electronically as 

an SDR attachment.

C17.3.2. Reporting Criteria

C17.3.2.1. U.S. Forces and participating non-Security Assistance fall under the reporting criteria 

based upon dollar value and/or condition as follows:

C17.3.2.1.1. GSA and DLA Directed Shipments Dollar Value Criteria. Optionally, recipients 

of DLA and GSA directed shipments may submit an SDR for all types of shipments regardless of dollar value. 

Otherwise, report discrepant shipments when they meet the conditions and value criteria cited in the paragraphs 

below.

C17.3.2.1.2. Contractor/Manufacturer or Vendor Shipments. Report discrepant shipments 

from contractors/manufactures or vendors that meet conditions cited under reporting criteria regardless of dollar 

value.

C17.3.2.2. DoD action activities shall recognize the ILCO’s determination whether SDRs fall within 

submission time standards and dollar limitation contained in the United States of America Department of State 

Letter of Offer and Acceptance controlling the case, or any other sales agreement with a Security Assistance

purchaser. Once accepted by the ILCO and forwarded to the responsible action activity, further evaluation for 

time standard and dollar criteria is not appropriate. 
Enclosure 1, ADC 488

Page 9

C17.3.2.3. Condition of Materiel

C17.3.2.3.1. Condition Misrepresented. Report when the condition of an item valued in 

excess of $100 per line-item is found to be other than shown on the shipping document, or, in the case of 

subsistence, on supporting inspection/test certificates or records. Use the hazardous materiel discrepancy code 

when applicable.

C17.3.2.3.2. Hazardous Materiel. Report discrepant receipt of hazardous materiel under the 

appropriate H-series discrepancy code. Use in place of the C-series codes for condition/shelf-life discrepancies 

when a hazardous item is received in a condition other than shown on the supply document or on the supporting 

inspection/test certificate. Report receipt of hazardous item requiring repair and lack of a material safety data 

sheet (MSDS) in Hazardous Material Information Resource System (HMIRS). Also use to report receipt of a 

non-radioactive item classified as radioactive, or non-hazardous item classified as hazardous. 

C17.3.2.3.3. Missing Part. Report materiel received for repair that has been cannibalized of 

nonexpendable parts or components (including cannibalization of nonexpendable basic issue item (BII) or 

nonexpendable supply system responsibility item (SSRI) without the authorization of the inventory manager 

when the total value of the missing item(s) is in excess of $100). Expendable BII and SSRI are not subject to 

these procedures.

C17.3.2.3.4. Expired Shelf Life. Report receipt of materiel for which the shelf life either has 

expired (Type I non-extendible item) or the inspect/test date has lapsed (Type II extendible item), regardless of 

dollar value. Use the hazardous materiel discrepancy code when applicable.

C17.3.2.3.4.1. For Type I DoD and GSA managed items: submit an SDR.

C17.3.2.3.4.2. For Type II DoD-managed items: prior to submitting an SDR, access the 

DoD Shelf-Life Extension System (SLES) through the DoD Shelf-Life Program Website at: 

https://www.shelflife.hq.dla.mil/default.aspx or through the shelf life program secure site if you have a .mil 

address.

C17.3.2.3.4.2.1. Type II items requiring laboratory test: query the DoD Quality 

Status Listing (QSL) to determine if the specified Type II item is listed as having passed the required laboratory 

testing and has been extended. Items that are listed on the QSL as passed may be extended and remarked 

accordingly if the item has been stored in accordance with its storage standard. For items not on the QSL, prior 

to submitting an SDR, contact the DLA call center at 1-877-DLA-CALL if the shipment originated from a DLA 

storage activity.

C17.3.2.3.4.2.2. Type II items requiring visual inspection: query the Materiel 

Quality Control Storage Standards for the specified Type II item, perform visual inspection in accordance with 

the items storage standard, and extend and remark if the item has been stored in accordance with its storage 

standard. If the item fails the visual inspection, dispose of as required by local procedures.

C17.3.2.3.4.3. For Type II GSA-managed shelf-life-items: prior to submitting an SDR, 

contact the GSA Shelf-Life Hotline at 1-209-547-8634 to determine if the inspect/test date has been extended.

C17.3.2.4. Canceled Requisitions. An SDR is required when materiel received is valued in excess 

of $100 per line-item for canceled requisitions. Confirmation of the cancellation must be on file. The submitter 
Enclosure 1, ADC 488

Page 10

should request disposition instructions for unwanted materiel. Exception: an SDR must be submitted when 

controlled inventory items are received on previously canceled requisitions regardless of dollar value.

C17.3.2.5. Documentation. Report when supply documentation is missing, incomplete, or 

improperly prepared regardless of dollar value.

C17.3.2.6. Overage/Shortage, Nonreceipt, or Duplicate Discrepancies

C17.3.2.6.1. Overage/Shortage. An item overage or shortage discrepancy occurs when the 

quantity received is greater or less than that shown on the shipping document. This type of variance is not 

evident on delivery but is discovered when the article of freight, as described on the transportation document, is 

opened and the contents are checked. Report DoD shipper overages or shortages valued in excess of $100 per 

line item, except for controlled inventory items, that are reported regardless of dollar value. Customers may use 

a clear text description to indicate that erroneous or conflicting Materiel Receipt Acknowledgement information 

was previously submitted.

C17.3.2.6.2. Concealed Overage/Shortage. U.S. Government customers shall report overages 

or shortages discovered while opening a sealed vendor pack regardless of dollar value or shipper. These reports 

must contain, if available, the contract number from the packaging, the lot number, and original document 

number. A constructed document number should be provided when the original number is not known. When 

using a constructed document number in an SDR coordinate with the applicable Component finance office 

and follow MILSBILLS procedures citing Code U in the first position of the constructed document number 

serial number (DLMS Utilization Code U), include fund code and credit-to/bill-to DoDAAC, to ensure that 

credit/billing is appropriate.

C17.3.2.6.3. Quantity Variances. Quantity variances on receipts from procurement authorized 

by the terms of the contract are not reportable as discrepant.

C17.3.2.6.4. Quantity Unit Pack (QUP) Variances. Report quantity variance due to 

incompatibility of unit of issue (U/I) between documentation and materiel received. Automatic adjustment for 

unit pack is allowable by policy, unless the requisition contains an appropriate advice code, in accordance with 

Chapter 4, restricting the quantity.

C17.3.2.6.5. Exceptions to Reporting Overage/Shortage. For U.S. Government customers, 

this does not include transportation discrepancies as follows:

C17.3.2.6.5.1. Overages or shortages of boxes, packages, or loose articles of freight in a 

commercial/Government-owned/leased shipping container (commonly called SEAVAN), Military SEAVAN 

(MILVAN), a Military Sealift Command SEAVAN (MSCVAN or MILVAN), roll-on/roll-off (RORO) trailer, 

or CONEX.

C17.3.2.6.5.2. Overages or shortages of freight (packaged or loose), upon delivery by a 

carrier, found to be in excess of the quantity of articles recorded on the bill of lading or transportation document 

covering the shipment.

C17.3.2.6.5.3. Average Net Weight Lotting System. DLA’s subsistence commodity will 

use the average net weight lotting system when shipping perishable specification freeze and chill items. Actual 

weight received may differ from actual weight requisitioned or shown on the supply documentation. Do not 
Enclosure 1, ADC 488

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submit a discrepancy report if the number of cases/containers received agrees with the number shown on supply 

documentation, and actual weight received is within weight range variation.

C17.3.2.6.6. Total Nonreceipts

C17.3.2.6.6.1. Report non-receipt of items shipped via traceable means, e.g., GBL or 

CBL, registered, insured, certified USPS, or small package carrier shipments, regardless of dollar value only 

when it has been determined that non-receipt is not the result of a transportation discrepancy. In all cases, U.S. 

Government customers must have received supply/shipment status and employed materiel follow-up 

procedures. It is strongly recommended that the customer check for requisition status on Web Visual Logistics 

Information Processing system (WebVLIPS), for proof of shipment data on DLA Distribution Standard System 

(DSS) Materiel Release Order (MRO) Tracker or on the Integrated Data Environment/Global Transportation 

Network (IGC/IDE), or check SDR status in the use the DoD WebSDR system hyperlink to WebVLIPS to 

check requisition status before creating an SDR for total non-receipt. This may preclude the need for an SDR 

or may enable the action activity to resolve the problem more quickly.

C17.3.2.6.6.2. Security Assistance customers reporting non-receipt are required to 

provide documentation from the freight forwarder indicating that no materiel has been received on the 

requisition and transportation control numbers that apply. The ILCO shall deny and return as incomplete any 

SDRs that do not have the documentation attached.

C17.3.2.6.6.3. An SDR is required when items valued in excess of $100 dollars per lineitem, reported shipped by non-traceable USPS (i.e., not shipped registered, insured, certified mail) are not 

received or are received in a damaged condition.

C17.3.2.6.7. Duplicate Shipments. Report duplicate shipments regardless of dollar value.

C17.3.2.6.8. SDRs for Air Force Maintenance Denials Under BRAC Supply, Storage and 

Distribution (SS&D) Agreement. SDRs resulting from distribution depot denial of an Air Force-directed 

release order for inventory previously requisitioned from DLA and receipted into Air Force ownership as the 

result of a “wash” (issue/receipt in-place), shall be reported to the depot for initial action. This is an automatic 

SDR generation triggered by a warehouse refusal citing Denial Management Code 1 (stock exhausted) or 2 

(materiel not available in condition requested). The SDR shall identify the original requisition document 

number (under which the materiel was purchased from DLA) and the maintenance denial document number 

(identified by the Air Force maintenance site M-series identifier in the first six characters of the document 

number). The maintenance denial document number shall be carried as the customer-assigned SDR number to 

facilitate depot research. The discrepancy may be reported as total non-receipt (total denial) or as a shortage 

(partial denial). DLA shall issue credit based upon the depot recommendation and confirmation of prior billing. 

If materiel is still required, a new requisition shall be generated perpetuating the applicable denial management 

code. The replacement requisition shall also cite the prior (original) document number for cross-reference.

C17.3.2.7. Misdirected Materiel. Report when materiel, regardless of dollar value, is improperly 

addressed and shipped to the wrong activity. The document number assigned to the SDR will be the document 

number from the shipping documentation of the misdirected shipment received. (If the customer requisitioned 

materiel that was not received, it must be reported on a separate SDR for total non-receipt using the document 

number for the requisitioned materiel.) Misdirected shipments received by Security Assistance customers 

identify the location of the discrepant materiel and the country reporting the receipt (which may differ from the 

intended customer). All customers (U.S. and Security Assistance) are required to report misdirected controlled 
Enclosure 1, ADC 488

Page 12

inventory, arms, arms parts, and explosives within 24 hours of discovery. (Properly addressed materiel 

incorrectly shipped to the wrong activity while under U.S. Government-controlled transportation is reportable 

as a transportation discrepancy.)

C17.3.2.8. Packaging Discrepancies

C17.3.2.8.1. Improper Packaging. Report any unsatisfactory condition resulting from 

improper packaging that causes the item, shipment, or package to be vulnerable to any loss, delay, or damage 

according to the specific conditions cited. Unless otherwise indicated, the minimum dollar value reporting 

criteria is when the estimated/actual cost of correction exceeds $100; or the value of the item, shipment, or 

package is $2500 or over, regardless of the estimated or actual cost to correct the packaging discrepancy. This 

may include loss or damage to the item, shipment, or package except when a report is otherwise required by 

DTR 4500.9-R, Defense Transportation Regulation, Part II, Cargo Movement. Where encoded information on 

the SDR is not sufficient, the submitter should provide detailed descriptions of how the materiel was packaged, 

as well as the actual damages incurred to the materiel. The submitter should also include, when available, the 

estimated cost of correction of packaging on the initial SDR. 

C17.3.2.8.2. Packaging Discrepancies Noted at DLA Distribution Depots. To ensure proper 

billing, indicate if the materiel is a major item, i.e., ships, aircraft, missiles, ammunition, vehicles, etc., or 

secondary item, i.e., any item that supports a major item such as reparables, consumables, assemblies, etc. 

Distribution Depots shall include projected or actual costs for labor and repackaging materiels. If actual, 

indicate the date corrective action was completed. 

C17.3.2.8.3. Mission or Life Endangering. Report packaging discrepancies, regardless of 

dollar value, resulting in damaged materiel that may endanger life, impair combat or deployment operations, or 

affect other materiel. Report immediately to the shipping activity, contracting office, or control point by the 

quickest communication medium to enable the shipper to take immediate corrective action. Submit an SDR 

within 24 hours of the initial report.

C17.3.2.8.4. Hazardous Materiel (Includes Ammunition and Explosives). Report any 

packaging discrepancy, regardless of dollar value, if a potentially hazardous condition could result or if damage 

or an unsatisfactory condition has occurred involving any hazardous materiel. This includes improper 

identification markings of items and packaging and/or unitized loads. Use hazardous materiel discrepancy 

codes when applicable.

C17.3.2.8.5. Excessive Packaging. Report excessive packaging by contractors that result in 

additional costs to the U.S. Government, regardless of dollar value.

C17.3.2.8.6. Improper Packing. Report any type of inadequate or improper packing to include 

incorrect blocking or bracing, oversized or incorrect container, and inadequate closure, resulting in an 

unsatisfactory condition or damage. Report when materiel is not packed in required reusable container 

regardless of dollar value.

C17.3.2.8.7. Personal Property. Report packaging discrepancies involving shipments of 

personal property not conforming to specifications. Packaging discrepancy reports on personal property 

shipments shall be prepared at aerial and water terminals only.
Enclosure 1, ADC 488

Page 13

C17.3.2.8.7. Delay or Additional Costs. Report packaging discrepancies resulting in delay or 

additional packaging costs at aerial or water terminals or at consolidation and containerization points. The 

activity responsible for operating the terminal or port of embarkation/debarkation shall be responsible for the 

preparation and submission of an SDR on discrepancies noted on shipments moving through the activity. These 

SDRs shall be prepared using Discrepancy Document Type Code W.

C17.3.2.8.8. Improper Packaging of Customer Returned Materiel. Distribution Depots shall 

send an SDR to the materiel owner for packaging discrepancies related to customer returned materiel or interdepot transferred materiel. The materiel owner is responsible for funding packaging costs associated with 

preparing materiel for storage and reissue. Packaging discrepancies occurring in materiel returns are subject to 

recoupment action at the discretion of the materiel owner. If the packaging is so bad that the item must be 

disposed, the shipper may be required to reimburse the receiver for any packing required to effect the shipment 

and the cost of turn in to DLA Disposition Services. The distribution depot shall always include the estimate of 

the costs of repackaging or disposal on the initial SDR submission, in the remarks section and complete the 

appropriate data element entries for electronic submission.

C17.3.2.8.9. Wood Packaging Materiel (WPM). Report WPM that is not consistent with the 

international standards for the regulation of WPM transiting international boarders and Department of 

Agriculture regulation governing importation of regulated WPM. Compliant WPM must display certification 

marking as prescribed in reference. Use discrepancy code P215 and provide remarks as applicable. Also see 

guidance for CCP-originated SDRs below.

C17.3.2.8.10. Repetitive Packaging Discrepancies. Include Discrepancy Code Z1, Repetitive 

Discrepancy, with the other specific packaging discrepancy code(s) to report repetitive packaging discrepancies 

that impose a significant burden on receiving or transshipment activities. Total costs to correct packaging shall 

be included in the SDR.

C17.3.2.8.11. Improper Preservation. Report any type of inadequate or improper preservation 

or physical protection resulting in an unsatisfactory condition or damage. Report improper preservation of any 

materiel identified as being electrostatic/electromagnetic (ES/EM) sensitive, regardless of the dollar value.

C17.3.2.8.12. Improper Marking. Prepare an SDR to report any omitted, incomplete, illegible,

or misplaced markings. Report improper identification of containers, or items that require opening the 

container, or result in improper storage of the materiel, regardless of cost. Improper marking includes 

discrepancies related to passive radio frequency identification (pRFID) tags as follows:

C17.3.2.8.12.1. Report all missing, damaged, or unreadable pRFID tags when such tags 

are required by contract provisions, DoD policy, or specified by prior shipment notice/status reflecting pRFID

content. Report duplication of tag identification associated with a previously processed receipt.

C17.3.2.8.12.2. SDRs may be used to report a tag read formatted for DoD use, but which 

does relate to an advance shipment notification containing pRFID content when such advance shipment 

notification is required by contract provisions or DoD policy.

C17.3.2.8.13. Improper Unitization. Report improper unitization that includes inadequate 

wrapping/strapping or lack of unitization, where appropriate, resulting in an unsatisfactory condition or damage. 

Report multiple consignees in a single consignee consolidation container as improper unitization.
Enclosure 1, ADC 488

Page 14

C17.3.2.8.14. Latent Packaging Discrepancies. Prepare a late SDR for materiel found in 

storage with latent preservation and packaging discrepancies. Confine these reports to stocks that constitute a 

problem resulting from a particular specification, preservation, or packaging method. Reports relative to 

packaging discrepancies found in storage shall be annotated "not incident to shipment.”

C17.3.2.9. Quality Related Issues Identified During Distribution Depot Receipt. Three-position Qseries discrepancy codes have been developed to accommodate materiel owners with special programs requiring 

immediate visibility and notification of quality deficient (or potentially deficient) materiel received at the 

distribution depot. These codes are applicable for reporting to ICP/IMMs via the SDR process, based upon 

special inspection requests by the materiel owner. These reports are contingent upon pre-existing receipt 

restriction requirements that identify the National Stock Number (NSN) and specific actions the materiel owner 

expects the distribution depot to perform. Some of the specific programs that require reporting of qualityrelated concerns for receipts, including new procurement and customer returns, are: PQDR exhibits, items 

identified as customer return improvement initiative (CRII) items, critical safety items, items that failed under 

use, and items requiring First Article Testing.

C17.3.2.10. Technical Data. Report item technical information, e.g., name plate, operating 

handbook, logbook, precautionary markings, warranty data, engineering drawings and associated lists, 

specifications, standards process sheets, manuals, technical reports, catalog item identifications, and related 

information that are missing, illegible, incomplete and/or incorrect regardless of dollar value. When reparables 

are returned and the appropriate historical information/documentation, operator/maintenance logbooks, engine 

oil analysis, etc., as required by Government regulations, and/or technical manuals are not included, the 

receiving activity shall submit an SDR regardless of dollar value. Any additional costs incurred by the repairing 

depot/arsenal because of the missing data shall be charged to the originating activity. The submitter shall

ensure that the specific description of what documentation is missing is included in the remarks section. 

C17.3.2.11. Incorrect Item

C17.3.2.11.1. Report incorrect or misidentified materiel or unacceptable substitutes regardless 

of dollar value. However, unless the requisition contains an appropriate advice code in accordance with 

Chapter 4, limiting the request to a specific item, automatic shipment of an interchangeable or substitute item is 

allowed by policy. See Interchangeability & Substitutability (I&S) guidance. Report wrong item receipts of 

controlled inventory, arms, arms parts, and explosives within 24 hours.

C17.3.2.11.2. Incorrect item discrepancies discovered while opening a sealed vendor pack 

shall be reported regardless of dollar value or shipper. These reports must contain the contract number from the 

packaging and, if available, the lot number and the original document number. A constructed document number 

shall be provided when the original number is not known. When using a constructed document number in an 

SDR coordinate with the applicable Component finance office and follow MILSBILLS procedures citing 

Code U in the first position of the constructed document number serial number (DLMS Utilization Code U), 

include fund code and credit-to/bill-to DoDAAC to ensure that credit/billing is appropriate. Include identity of 

the incorrect item received in the discrepancy report.

C17.3.2.11.3. Where two separately managed items are involved in a wrong item SDR, e.g., a 

DLA-managed item was ordered and a Military Service-managed item was received due to shipper error, the 

SDR initiator shall forward the report to the shipping depot or manager of the item ordered, in accordance with 

Component rules. It is the responsibility of the SDR action activity (receiver of the SDR) to ensure full and 

appropriate resolution by coordinating with the other involved ICP/IMM or transferring the SDR (manually), so 
Enclosure 1, ADC 488

Page 15

that the initiator receives all applicable and appropriate response information from the responsible party. This 

may be interpreted to mean two separate SDR replies, or a single coordinated response identifying financial 

resolution from the Component that sourced the order, and materiel disposition instructions provided by the 

owner of the materiel shipped.

C17.3.2.11.4. Report part number discrepancies when the part number marking appears to be 

inconsistent with the specified NSN. This includes when the part number received is not associated with the 

applicable NSN or when the part number cannot be matched to Federal Logistics Information System (FLIS)

catalog data/FEDLOG. The SDR must include the part number and manufacturer’s Commercial and 

Government Entity (CAGE) Code for the item received. Part discrepancies shall be submitted directly to the 

item manager. 

C17.3.2.11.5. DoD WebSDR requires identification of the incorrect item received using 

discrete data elements (refer to the DLMS Supplement 842A/W). If multiple incorrect items are received under 

the same document number, use the appropriate discrepancy code for mixed stock and identify the first (highest 

quantity or controlled item) and use the remarks text to explain the mixed content shipment. 

C17.3.2.12. Repetitive or Other Discrepancies. Receiving activities shall report repetitive 

discrepancies, regardless of dollar value. Additionally, receiving activities may report any other discrepant 

condition of an item not specifically identified in this chapter at the time of receipt, unless listed specifically 

under exclusions.

C17.3.3. SDRs Resulting from Redistribution Orders (RDOs). When a distribution depot receives an 

RDO from another distribution depot and the materiel is short, over, wrong, or quality deficient, the receiving 

depot shall:

C17.3.3.1. RDO Shortage. Prepare the SDR to report shortage and use Action Code 1D (materiel 

still required). The shipping depot shall receive the action copy; the ICP shall receive an information copy. 

The depot receiving the SDR shall treat it as a priority and conduct inventories as appropriate. If the inventory 

confirms an over balance, the depot shall respond using Disposition/Status (Reply) Code 123 (materiel will be 

reissued at no charge) citing inventory conducted and verified shipment error. If the inventory confirms correct 

balance or the balance is short, the depot shall reply with Disposition/Status (Reply) Code 126 (materiel not 

available for reshipment) or 701 (SDR rejected) citing inventory conducted and no overage was discovered; no 

materiel will be shipped, OR, inventory conducted and shortage was identified; loss adjustment recorded on 

depot accountable record, no materiel will be shipped. 

C17.3.3.2. RDO Overage. Prepare the SDR to report overage using Action Code 1B (materiel being 

retained). The shipping depot will receive the action copy; the ICP shall receive an information copy. The 

depot receiving the SDR shall treat it as a priority and conduct inventories as appropriate. If the inventory 

confirms an over-shipment error, the shipping depot shall respond with Disposition/Status (Reply) Code 137,

annotating that inventories were conducted and balances were adjusted to show correct on hand balance. If 

inventory confirms no over-shipment was made, the shipping depot shall respond with Disposition/Status 

(Reply) Code 701 (SDR rejected), citing inventory conducted and on-hand balances are correct.

C17.3.3.3. RDO Wrong Item. Prepare the SDR to report receipt of wrong item using Action Code 

1D (materiel still required). The shipping depot shall receive the action copy; the ICP shall receive an 

information copy. The depot receiving the SDR shall treat it as a priority and conduct inventories on both the 

wrong item that was shipped and the correct item that was not shipped. No distribution depot shall request or 
Enclosure 1, ADC 488

Page 16

authorize return or movement of wrong materiel received as an RDO; the ICP/IMM shall make all materiel 

movement decisions. If the inventory confirms an overage of the correct NSN, the shipping depot shall respond 

using Disposition/Status (Reply) Code 123 (materiel will be reissued at no charge), citing inventory conducted 

and shipment error confirmed; materiel will be shipped to correct shipment error. If the inventory fails to 

confirm an overage of the correct NSN, but an inventory of the wrong NSN reveals a shortage, the shipping 

depot shall reply using Disposition/Status (Reply) Code 126 (materiel not available for shipment), citing 

inventories conducted on both NSNs confirm shipment error; accountable record corrected; no materiel will be 

shipped. Report wrong item receipts of controlled inventory, arms, arms parts, and explosives within 24 hours.

C17.3.3.4. RDO Quality-Related Issues. Prepare an SDR when quality-related issues are noted 

upon receipt, or when materiel received on the RDO must be suspended prior to stow. The action copy shall be 

sent to the ICP/IMM using Action Code 1A (disposition instructions requested). The ICP/IMM shall respond to 

the receiving depot with disposition instructions, to include condition code change requirements where 

appropriate. Refer to quality-related issues in paragraph C17.3.2.9. 

C17.3.4. Materiel Returns

17.3.4.1. Discrepancy Greater Than $100. Continental United States (CONUS) and Outside 

Continental United States (OCONUS) activities receiving materiel returns (excess or redistributed materiel, or 

reparable materiel, including returns from FMS customers) shall submit an SDR for discrepancies specified 

above regardless of condition when the dollar value is equal to or greater than $100 per line-item. 

Discrepancies pertaining to controlled inventory items shall be reported by SDR regardless of dollar value or 

condition.

17.3.4.2. Exception for Returns Between U.S. Activities. When the materiel return shipments are 

classified as unserviceable and uneconomically reparable upon receipt, the receiving activity shall report to the 

shipping activity. The report shall include materiel return document number, quantity, and an explanation of 

condition classification.

C17.3.5. Discrepancies Resulting from Lateral Redistribution Orders (LROs) on Total Asset Visibility 

(TAV) Shipments. Coordination with the Military Service shipping activity is recommended prior to ICP 

resolution of the SDR. An exception from normal routing exists for SDRs entered via DoD WebSDR on LROs 

for TAV shipments between DLA and the Army’s Non-Army Managed Items Group, Supply Directorate 

(NAMI Group, RIC AJ2)".

C17.3.5.1. All SDRs submitted for DLA directed LROs where the item is managed by DLA, owned 

by NAMI (RIC AJ2), and shipped from an Army CONUS site, shall be sent to NAMI for investigation, with an 

information copy to DLA (RIC SMS). NAMI will research the discrepancy and forward recommended 

disposition to DLA for final action. The NAMI action activity shall provide recommended disposition to DLA 

within 25 calendar days. After 25 calendar days have elapsed and NAMI recommended resolution has not been 

received, DLA shall follow-up for recommended disposition.

C17.3.5.2. Upon receipt of recommended disposition, DLA shall review and provide final decision 

to the customer, along with an information copy to NAMI. DLA shall be responsible for reversing all credits

previously paid to the TAV shipping activity, issuing credit debits to the requisitioner, and deleting activities 

from the TAV process due to poor performance, in coordination with NAMI.
Enclosure 1, ADC 488

Page 17

C17.3.5.3. If Army shipped the wrong item or an overage, NAMI shall be responsible to provide the 

customer with disposition instructions and/or directions for returning the item back to Army. If the item is to be 

retained by the customer, NAMI shall be responsible for financial actions as appropriate. DLA shall not 

reimburse the shipper for wrong item or over shipments of Army issues relative to TAV.

C17.3.6. Distribution Depot Receipt with no Due In. Distribution Depots shall report receipt of 

unscheduled materiel from new procurement to the owner/IMM, regardless of condition of materiel, as a 

discrepancy. Other unexpected materiel receipts, including returns and/or redistributions that are not ICP/IMM 

directed, and unscheduled returns to/from maintenance, may be reported by prior direction of the owner/IMM.

C17.3.6.1. New procurement materiel with other applicable discrepancies, e.g., missing receiving 

report/DD Form 250, improper packaging, shall be placed in Supply Condition Code (SCC) L pending 

resolution. Exception: discrepant critical safety item (CSI) materiel shall be placed in SCC J regardless of 

whether it is new procurement or returned materiel. Initial SDR shall include estimated costs of disposal or 

repackaging in the remarks section and complete the appropriate data element entries for electronic submission.

C17.3.6.2. If other than new procurement, the SDR should show receipt in SCC K when the actual 

condition cannot be determined. Materiel returned with other identified discrepancies, e.g., without associated 

technical data, shall also be reported as indicated under the appropriate discrepancy category. Returns of excess 

materiel that are not ICP/IMM directed are subject to recoupment of costs associated with disposal or 

repackaging costs incurred by the distribution depot.

C17.3.7. DLA Disposition Services Discrepancies

C17.3.7.1. Dollar Value Greater Than $100. Receiving activities shall submit an SDR for 

discrepancies specified above in shipments to and from DLA Disposition Services Field Offices when the dollar 

value is greater than $100 per line item.

C17.3.7.2. Exception. Activities shall submit a discrepancy for overages and shortages in shipments 

of controlled inventory items regardless of dollar value.

C17.3.7.3. DLA Disposition Services and DLA Disposition Field Office SDR Procedures. During 

the receiving process, if the DLA Disposition Services Field Office identifies a supply discrepancy, an outgoing 

SDR shall be generated consistent with Chapter 16. 

C17.3.8. Discrepancies in Item Unique Identification (IUID) Data. Report discrepancies involving IUID 

under Unique Item Tracking (UIT) program requirements or as contractually required under IUID program 

policy. Discrepancies may be related to the packaging label, including automated information technology 

(AIT); the item marking, including AIT; supply documentation; the due-in record; and/or a mismatch between 

the item and any of these. The elements which may comprise unique identification are: unique item identifier 

(UII), UII type, issuing agency code, enterprise identifier (or manufacturer’s CAGE), part number (original or 

current), serial number, and batch/lot number. The application of these elements vary according to multiple 

factors such as the type of item and the specific contract requirements. Discrepancies identified during receipt 

of new procurement materiel must be reported prior to acceptance. Materiel may be placed in a suspended 

condition pending resolution. Discrepancies that result in incorrect information within the IUID registry at 

DLA Logistics Information Service must be reported and corrective action taken.
Enclosure 1, ADC 488

Page 18

C17.3.9. Transshipper Prepared SDRs. CCPs shall prepare an SDR to report packaging discrepancies as 

described above.

C17.3.9.1. Supply Discrepancies Requiring Transshipper Reporting. SDRs shall be prepared for 

supply discrepancies related to hazardous shipments and non-compliant wood packaging material (WPM). The 

following discrepancy codes apply, although this does not exclude other item/packaging discrepancies that may 

result in frustrated shipments:

C17.3.9.1.1. H3 – Lack of a material safety data sheet (MSDS) in Hazardous Material 

Information Resource System (HMIRS).

C17.3.9.1.2. H6 – Shipper’s declaration for dangerous goods missing or incorrect.

C17.3.9.1.3. P209 – Improper packing of hazardous materiels.

C17.3.9.1.4. P215 – Non-conformance to specified requirements for WPM.

C17.3.9.1.5. P302 – Improper marking of hazardous materiels.

C17.3.9.2. CCP SDRs for Non-Compliant WPM. CCPs shall notify ICPs that their OCONUS 

WPM shipment is not in compliance with DoD 4140.65-M, “Compliance For Defense Packaging: Phytosanitary 

Requirements for Wood Packaging Material (WPM),” and ISPM 15 requirements. The expiration of the DoD 

Pest Free mark and the requirement to use the International Plant Protection Convention (IPPC) stamp to 

indicate WPM compliance brings the requirement to remediate all noncompliant WPM destined for OCONUS. 

WPM shipments can be remediated by repackaging or by use of a heat chamber. SDRs shall be prepared for 

noncompliant shipments received by the CCPs. Noncompliant shipments will not be held for disposition. 

Shipments on noncompliant pallets will immediately be re-palletized onto compliant wood pallets. Boxes, 

crates, etc. shall be sent to a remediation area through use of DSS packing, packaging, preservation & marking 

(PPP&M) process, and placed in a Hold Status W until remediation is completed. SDRs shall be generated for 

both pallet replacements and box/crate rebuilds. The SDR will normally cite SDR Action Code 3B, 

Discrepancy Reported for Corrective Action and Trend Analysis. No reply is required. This type of SDR does 

not require a response from the source of supply or other designated activity; but is provided so that the source 

of supply may take appropriate action with the Component shipper or vendor and track trends and associated 

repackaging costs. The SDR shall be auto-closed in the DSS, based on the P215 discrepancy code (indicating 

noncompliant WPM), and will not be reopened. The point of contact (POC) may be contacted if SDR was sent 

to the wrong supply source. Labor and material to remediate will be charged to a CCP Cost Code. If a 

frustrated shipment requires an expedited SDR reply to the CCP, use of Action Code 3A, Transshipper 

(Aerial/Water port or CCP) Requests Expedited Response; Shipment Frustrated, is authorized.

C17.3.9.3. Aerial or Water Port Prepared SDRs. The port (identified by DoDAAC) shall prepare an 

SDR to report packaging or documentation discrepancies as described above. If the shipment is not frustrated 

and forward movement is not stalled awaiting the action activity response, the SDR shall cite Action Code 3B, 

Discrepancy Reported for Corrective Action and Trend Analysis. No reply is required. If the shipment is 

frustrated, the SDR shall cite Action Code 3A, Transshipper (Aerial/Water port or CCP) Requests Expedited

Response; Shipment Frustrated, is Authorized. The submitter shall use the remarks block to clarify desired 

actions and shipment information where specific data fields in the SDR are not available pending full 

implementation.
Enclosure 1, ADC 488

Page 19

C17.3.9.4. Expected Data Content for Transshipper SDRs. These SDRs shall be identified by 

Discrepancy Document Type Code W and will include the number and type of discrepant pieces. The 

transportation control number (TCN) will be the primary reference number for operational processes. If the 

shipment is received at the CCP without a TCN, one shall be assigned in accordance with the DTR. SDRs 

prepared at the shipment level may include multiple items, or there may not be due-in or documentation 

available. Because a document number is mandatory within DoD WebSDR, the CCP or other transshipment 

activity may need to generate a document number based upon the submitter’s DoDAAC if multiple documents 

are included or the original document number is unavailable. Action activities shall not reject Transshipper 

SDRs for unmatched document numbers without researching by TCN and other identifying shipment 

information. Multiple document numbers, when available, shall be recorded in the SDR remarks. Materiel 

identification may be identified as “UNKNOWN” or “MIXED” (multi-pack or other consolidation of different 

items). When this occurs, quantity and U/I shall be left blank. When possible, the shipper shall be perpetuated 

from the due-in notification (e.g. DLMS (US TRANSCOM-maintained) 856A) or shipping documentation. 

The owner/manager (source of supply) shall be identified as the ICP/IMM that directed the shipment when 

applicable.

C17.3.10. SDR Distribution. This section addresses those organizations that must be identified on the 

SDR as initial action recipient or as receiver of information copies. Such determination is based upon the 

type or origin of the shipment involved, the DoD Component that directed shipment, and the type of 

discrepancy. Applicable action activities include Inventory Control Point (ICP), International Logistics 

Control Offices (ILCO), and DLA Distribution Depots. For items requiring special handling and/or 

reporting, such as controlled inventory items, the responsible action activity must ensure additional 

distribution of the report as required. The submitter shall provide a copy of the Serious Incident Report, or 

other Component-required report, regarding controlled inventory items believed to be stolen, lost, or 

unaccounted for. Where access to an electronic SDR application and associated supply information is

available, hard-copy documents shall not be mailed. Where electronic attachment capability is not available, 

an exception is provided for mailing of information not readily available to the responsible/action activity 

and photographic/pictorial evidence of the discrepancy. 

C17.3.10.1. Security Assistance Shipments. All Security Assistance SDRs shall be sent directly to 

the applicable ILCO for initial screening and processing. SDRs may be submitted to the ILCO via SF 364, 

Report of Discrepancy, or authorized electronic/automated formats. The ILCO shall forward the SDR 

electronically to the appropriate action activity. Security Assistance SDRs bypassing the ILCO shall not be 

accepted by DoD and participating Agency action activities.

C17.3.10.2. SDR Distribution for Shipment (Item) Discrepancies

C17.3.10.2.1. DoD Originated Shipments

C17.3.10.2.1.1. Army Directed Shipments. Initial action shall be directed to the source 

of supply (SoS). The only valid Army action activity/SoS RICs are AKZ, A12, A35, AJ2, B14, B16, B17, B46, 

B64, and B69. Army users are advised not to submit SDRs to single stock fund (SSF) site RICs or to Army 

shipping depot RICs via DoD WebSDR. There are currently no WebSDR interfaces to support SSF sites or 

Army shipping depots. The Army action activity can be determined from the shipping documentation (e.g., 

the RIC in record position 67-69 of the DD 1348-1A), or as part of a search of a NIIN/NSN or Part Number 

search on WebFLIS (http://www.dlis.dla.mil/webflis/)Note that the FLIS SoS will not apply if the requisition 

was filled by AJ2, Non-Army Manager Item (NAMI) SoS.
Enclosure 1, ADC 488

Page 20

C17.3.10.2.1.2. Total nonreceipt SDRs for Security Assistance Shipments from DLA 

Distribution Depots. SDRs shall be forwarded by the ILCO directly to the DoD shipping depot regardless of 

implementing Component. Where the shipping depot is not known, forward to the ICP/IMM.

C17.3.10.2.1.3. Defense Logistics Agency (DLA) Directed Shipments. Initial action to 

the DoD shipping activity. Where the shipping activity is not known, forward the SDR to the ICP/IMM. 

WebSDR will provide an information copy to the ICP when identified on the SDR and when the SDR 

response is provided by the shipping activity. The ICP shall provide additional response to the submitter with 

final resolution and providing financial action when applicable. For contact information for DLA action 

activities refer to the DLA Customer Handbook. For assistance contact the Customer Support - Virtual 

Contact Center at 1-877-352-2255 (1-877-DLA-CALL) or DSN 661-7766; or the DLA Distribution Customer 

Support Team Point of Contact for SDRs at DSN 977-8749 (717)770-8749.

C17.3.10.2.1.4. GSA Directed Shipments

C17.3.10.2.1.4.1. GSA shipped from a GSA Supply Distribution Facility. Initial 

action to GSA (GSA National Customer Service Center).

C17.3.10.2.1.4.2. GSA shipped from a DLA Distribution Depot. Initial action to 

the shipping activity. DoD WebSDR will provide a copy to GSA.

C17.3.10.2.1.4.3. Purchases made by DoD Activities from Federal Supply 

Schedules or GSA Open-End Contracts. The customer may coordinate off-line with the supplier for 

resolution. Identify GSA to receive the SDR under the following conditions:

• repetitive discrepancies,

• cases of dispute that cannot be resolved between the ordering office and the supplier, or

• product quality deficient materiel in Security Assistance shipments where GSA has provided 

inspection at source.

C17.3.10.2.1.5. All Other DoD Component or Participating Agency Directed 

Shipments. Initial action to the DoD shipping activity. Where the shipping activity is not known, forward to 

the ICP/IMM. WebSDR will provide an information copy to the ICP, when identified, and/or the SDR 

response is provided by the shipping activity.

C17.3.10.2.2. DoD Central Procurement and Direct Vendor Delivery. For materiel 

procured centrally by a DoD Component ICP, distribution will be as follows irrespective of the point of 

inspection and acceptance.

C17.3.10.2.2.1. Initial action to the procuring ICP for internal distribution to the 

contracting officer or designated personnel. 

C17.3.10.2.2.2. Copy to office administering the contract/purchase order, if different 

from the purchasing office, except as otherwise prescribed for purchases made from federal supply schedules 

or GSA open-end contracts below. If not identified on the SDR, the initial action activity may forward as 

appropriate.

C17.3.10.3. Materiel Returns 
Enclosure 1, ADC 488

Page 21

C17.3.10.3.1. Initial action to manager’s ICP.

C17.3.10.3.2. Copy to shipping activity.

C17.3.10.4. Shipments to DLA Disposition Services

C17.3.10.4.1. Initial action to the turn-in activity, as identified on the defense turn-in 

document (DTID) (DD 1348-1A, Block 2). The SDR will be sent directly to the generator’s email address 

when available as the result of an electronic turn-in (DLA Disposition Services ETID). If ETID email 

address is not available, WebSDR distribution shall be to the turn-in activity SDR monitor or Componentsponsored SDR application.

C17.3.10.4.2. If distribution via ETID email address, a WebSDR generated copy will also be 

provided to the turn-in activity SDR monitor or Component-sponsored SDR application. 

C17.3.10.5. Shipments from DLA Disposition Services. Initial action to the Disposition Services 

Field Office or Recycling Control Point (RCP) as applicable. If not known, SDRs may be directed to DLA 

Disposition Services (RIC S9D). 

C17.3.10.6. Local Purchase. Follow DoD Component guidance. A copy will be furnished the 

Government inspector when inspection is at origin. DoD WebSDR does not support SDRs applicable to local 

purchase discrepancies.

C17.3.10.7. Industrial Plant Equipment Shipments. DLA, shall review all SDRs from the 

initiator, make further distribution as necessary, request appropriate action from the consignor, and provide 

the initiator with replies from the consignor and other closeout action.

C17.3.10.8. SDR Distribution for Packaging Discrepancies 

C17.3.10.8.1. Contractor/Vendor Shipments
Enclosure 1, ADC 488

Page 22

C17.3.10.8.1.1. Initial action to the ICP.

C17.3.10.8.1.2. Copy to Contract Administration Office (CAO). The submitter is 

encouraged to identify the applicable Defense Contract Management Agency (DCMA) office as a 

distribution copy recipient when applicable (see block 10 of DD Form 250, Material Inspection and 

Receiving Report or comparable receiving report). When applicable and not identified by the submitter on 

the SDR, the initial action activity shall forward the SDR to the DCMA or other applicable CAO. When the 

contract is administered by the Service or Agency issuing the contract, the ICP is responsible for insuring the 

CAO has access to the SDR information. 

C17.3.10.8.2.3. Copy to Administrative Contracting Office (ACO). The initial action 

activity shall furnish a copy of the SDR to the ACO (or otherwise provide visibility), if a different 

organizational entity is involved.

C17.3.10.8.2.4. Copy to Procuring Contracting Office (PCO). The initial action 

activity shall furnish a copy of the SDR to the PCO (or otherwise provide visibility), if a different 

organizational entity is involved.

C17.3.10.8.2.5. Copy to Component Packaging Monitor. SDRs for Air Force ICPdirected shipments shall be provided to the designated Air Force ICP packaging monitor by DoD WebSDR 

under Component-unique routing rules.

C17.3.10.8.2. DoD Originated Shipments

C17.3.10.8.2.1. Initial action as indicated above for DoD originated shipments.

C17.3.10.8.2.2. Information copy to be provided systemically by DoD WebSDR per 

Component guidance. SDRs for Air Force ICP directed shipments shall be provided to the designated Air 

Force ICP packaging monitor.

C17.3.10.10. The Exchange (formerly Army and Air Force Exchange Service (AAFES)). SDRs 

may be routed to the Exchange via DoD WebSDR to the SoS RIC.

C17.3.11. Follow-Up on Original SDR

C17.3.11.1. When the action activity does not respond to an SDR within the prescribed timeframe 

specified in this chapter, the submitting activity shall provide an SDR follow-up. Prior to submitting a followup, the reporting activity should first attempt to ascertain the status of the SDR using the DoD WebSDR query 

function. If there is no record of an action activity reply, a follow-up should be submitted. Follow-ups must be 

directed to the last identified action activity when the original SDR was forwarded by the original recipient. 

Cite the SDR report number of the original report. For transactional exchange, include the WebSDR-assigned 

control number when known. Follow-up transactions should include all data that was in the previous SDR 

submission. POC information for the follow-up and the follow-up date are required. A narrative entry is 

required to provide clarification for the follow-up.

C17.3.11.2. If no response is received to the follow-up within 30 calendar days, the originator shall 

contact DLA Distribution for distribution depot shipments (direct email to: DDC.ISDR@dla.mil) or the SoS for 

all other shipments to request assistance. Off line communication with the action activity is recommended 

because electronic processing errors may have impeded timely response to the SDR and later follow-up. DLA 
Enclosure 1, ADC 488

Page 23

Distribution or SoS will ensure that a response with disposition or interim status is provided within 30 calendar 

days.

C17.3.12. Responsible Action Activity Response to an SDR

C17.3.12.1. Procedures

C17.3.12.1.1. Processing. Responsible action activities shall process all discrepancy reports 

under the policies and procedures set forth in this publication and the DoD Component implementing 

regulations. Responsible action activities include all activities required to take action on a reported discrepancy. 

Action activities shall consider the associated MRA during validation of SDRs. Conflicting information shall

be investigated as appropriate.

C17.3.12.1.2. Replies. Responsible activities shall reply to SDRs by submission of a DLMS

842A/R to WebSDR or via direct WebSDR input. Pending implementation of DLMS, other previously 

authorized SDR response formats may be used. SDR replies shall indicate the appropriate disposition, e.g., 

acknowledgment of the report, disposition of the materiel, validation of the report with authorization of 

financial adjustment, and/or instructions for repackaging, repair or other types of corrective action. SDR replies 

must contain the appropriate discrepancy code consistent with all information provided by the customer. This 

may require updating of the discrepancy codes used by the customer to assign the appropriate discrepancy code 

for the scenario described in the SDR remarks. The action activity shall identify the disposition/status using the 

appropriate Reply Code (Appendix 3). Action activities shall ensure that inappropriate reply codes are blocked 

from use when responding to transshipper SDRs (Document Type Code W)2. Shipment information applicable 

to direct vendor deliveries, new procurement, etc., must be completed by the action activity where incomplete 

or inaccurate on the original report. This includes identification of the shipping activity or vendor (by CAGE), 

contract number, and identifying shipment numbers. DLMS compliant applications must also ensure that direct 

vendor delivery shipments are identified by Document Type Code 6 on the SDR reply, regardless of what the 

customer originally designated. Historical replies (transactions citing Transaction Set Purpose Code 49) shall 

be used to fulfill these requirements where the submitter indicated that an SDR reply was not required.

C17.3.12.1.2.1. Interim Replies. Interim replies may be used to inform the submitter that 

an SDR has been forwarded to another organization for investigation or resolution. Responsible activities must 

provide an interim reply where a final reply cannot be provided within the established timeframes. Failure to 

meet the established timeframes must be caused by reasons outside the control of the ICP/IMM or GSA. Such 

interim replies shall indicate when additional status will be provided. Identify the interim disposition/status 

using the appropriate Reply Code (Appendix 3). If no coding exists to specifically identify the reasons for the 

delay, select Code 137 and provide a clear-text explanation.

C17.3.12.1.2. 2. Denials. SDRs not meeting the reporting criteria or timeframes 

specified in this chapter or not including sufficient justification, shall be considered for information only, or 

denied, as appropriate. DoD ICP/IMM action activities are encouraged to accept late submissions lacking 

justification for trend analysis/corrective action; with associated financial credit provided at the discretion of the 

action activity. The responsible activity shall use the SDR response and cite the appropriate disposition/status 

(reply) code. 

 2 Refer to Approved DLMS Change 317B, Action Activity Replies to Transshipper-Prepared SDRs
Enclosure 1, ADC 488

Page 24

C17.3.12.1.3. DoD ICP/IMM, Shipping Depot, or GSA Actions. The ICP/IMM, shipping 

depot, or GSA shall:

C17.3.12.3.1. Review all SDRs received for processing and determine proper course of 

action based on available supply records and the results of investigation. This includes SDRs which the 

customer has reported as requiring no action (Action Code 1H or 3B).

C17.3.12.3.2. Provide the SDR response to include disposition instructions as needed to 

the customer or the ILCO for Security Assistance SDRs. The responsible activity shall provide point of contact 

information for each SDR response.

C17.3.12.3.3. Based upon validated SDRs, request that DFAS or integrated financial 

process authorize adjustment/credit in accordance with MILSBILLS procedures in DLM 4000.25, Volume 4, 

Finance.

C17.3.12.3.4. Provide signed evidence of shipment to the ILCO for Security Assistance

SDR for non-receipt of materiel. If this documentation cannot be provided, appropriate credit is required.

C17.3.12.3.5. Provide documentation to the ILCO that is matched to the quantity shipped 

for Security Assistance SDRs for concealed shortages. Examples of such documentation are those containing 

size, total weight, and cube accepted by the carrier. Credit is denied if the documentation, in conjunction with 

the unit weight, supports shipment of the total quantity billed. Otherwise, appropriate credit for the differences 

is required.

C17.3.12.4. Disposition of Materiel. Use the SDR response as an action reply for those 

discrepant conditions requiring disposition instructions to the reporting activity, e.g., overages, damages 

(USPS), deficient materiel (Security Assistance), or erroneous or misdirected materiel.

C17.3.12.4.1. Returning Discrepant Materiel. When discrepant materiel is directed to be 

returned, the responsible activity shall direct the customer to reship the materiel using the same document 

number under which the materiel was originally shipped. The SDR reply shall include the date by which the 

customer is requested to return the materiel to the designated location. The ICP shall require expedited return 

where appropriate, such as FMS classified/sensitive item returns, and overage returns for back-ordered materiel 

not available within another customer’s required delivery date. The return-to location shall be identified by 

DoDAAC or CAGE (contractors where no DoDAAC is assigned). Clear text addresses may be included in 

addition to the coded address since all customers may not have access to the authoritative address source. The 

SoS shall provide reimbursement for packing, crating, handling, and transportation for directed returns under 

MILSBILLS procedures in DLM 4000.25, Volume 4, Finance, procedures. Use of the Defense Transportation 

System (DTS) for the return movement is encouraged. As an alternative to providing transportation 

reimbursement, the responsible action activity may provide the transportation account code (TAC) chargeable 

for the transportation services and supporting information, e.g., the bill of lading number, or small package 

carrier account information. In those cases were an exhibit of the discrepant materiel is directed for return, the 

activity requesting this action will pay for exhibit shipment costs. Action activities shall either furnish DD 

Form 1348-1A for materiel to be returned or provide comparable information to accomplish the return. A copy 

of the SDR and the shipment document shall be included with returned materiel and annotated as an “SDR 

RETURN.” When discrepant materiel is directed for return to a contractor, a hard-copy SDR including 

disposition instructions shall be included with the shipment. No statement adversely affecting the Government's 

claim shall be shown on any documentation returned to the contractor. For non-Security Assistance customers, 
Enclosure 1, ADC 488

Page 25

materiel not returned as directed within 90 calendar days (if CONUS) or 120 days (if OCONUS) of the SDR 

reply will be billed.

C17.3.12.4.2. Corrective Action for Packaging Discrepancies. Responsible activities 

shall immediately investigate reported discrepancies and take action to prevent their recurrence. An indication 

of what corrective action shall normally be included in the SDR reply. An information copy shall be sent to the 

appropriate Component packaging monitor. For shipments of ammunition, explosives, or other hazardous 

materiel, the DoD or GSA responsible activities must provide reports of corrective action in all cases. 

Wherever possible, use the reply code and SDR remarks to show the corrective action. A corrective action 

statement may be recorded on a separate document if additional space is required. Statements of corrective

action shall also be sent when requested by the SDR initiator or upon special request of the Component 

packaging monitor. For contractor originated shipments, investigating activities shall send an information copy 

of the results of their investigation to the responsible procurement activity or commodity command. Reports of 

corrective action must not be delayed pending final determination of the contracting officer when 

reimbursement is warranted. Report final actions when completed. When a Contract Administration Office 

(CAO) investigating activity finds corrective or preventive action is outside the scope of contract administration 

and requires action by the procuring activity, the SDR and investigation report shall be forwarded to the 

procuring activity for action, with information copies to the appropriate Component packaging monitor and the 

initiator.

C17.3.12.4.3. Packaging Discrepancies Noted at a Distribution Depot. The ICP shall 

annotate the SDR to indicate that distribution depot repackaging is approved or not approved. If the ICP 

authorizes corrective action, the SDR will also show the appropriate funding/ authorization document, e.g., job 

order number, Military Interdepartmental Purchase Request (MIPR) number, or SF 1080, to which the 

distribution depot may charge the corrective action costs. After completing corrective action, the distribution 

depot will annotate the actual cost of the work performed, note the date completed, and forward a copy to the 

ICP for close-out.

C17.3.12.4.4. Corrective Action for Non-Compliant WPM. Action activities in receipt 

of SDRs reporting WPM non-compliance under generic packaging discrepancy codes must reassign the 

discrepancy code to P215 on their responses. This supports mandatory tracking and trend analysis using 

automated SDR applications. In the event the shipment becomes frustrated, the action activity will provide 

instructions for corrective action in order to bring the shipment into conformance or otherwise direct remedial 

action. Corrective actions and options shall be based upon the circumstances of the quarantined/frustrated 

shipment, value and priority of the shipment, access to the shipment by DoD personnel, and location of the 

consignee. Alternatives include: 

C17.3.12.4.4.1. Inspection, certification, and marking of compliant WPM,

C17.3.12.4.4.2. Replacement of the WPM,

C17.3.12.4.4.3. Consignee pick-up of the materiel only, or

C17.3.12.4.4.4. Return to origin or designated location.

C17.3.12.4.4.5. Repacking and disposal costs associated with non-compliant WPM 

receipts that shall be the responsibility of the owner of the stock directing shipment (i.e. last identified shipper 
Enclosure 1, ADC 488

Page 26

or item manager). Photographic evidence may be requested to substantiate a claim for the recoupment of funds 

expended in bringing the shipment into compliance. Where applicable, the reporting activity may submit an SF 

1080, “Voucher for Transfers between Appropriations and/or Funds.”

C17.3.13. Time Standards

C17.3.13.1. Submitting SDRs and SDR Responses. This section provides standard timeframes 

for submission of SDRs and SDR responses. 

C17.3.13.1.1 Timeframes for SDR Submission by Non-Security Assistance Customers. 

An SDR shall be submitted by receiving activities and/or transshipment activities as soon as possible, but not 

later than the time standards listed below. SDRs not meeting the reporting criteria or timeframes specified in 

this guidance that do not present sufficient justification shall be processed for information only. Routine time 

standards, special rules, and exceptions are:

C17.3.13.1.1.1 CONUS Destinations: 60 calendar days from date of shipment.

C17.3.13.1.1.2. Overseas Destinations: 120 calendar days from the date of 

shipment

C17.3.13.1.1.3. Discrepant Controlled Inventory Items, Arms, Arms Parts, 

Ammunition, and Explosives. Report discrepancies within 24 hours of discovery for shortage, overage, wrong 

item, misdirected shipments. This includes stock number materiel with a catalogued controlled inventory item 

code (CIIC) indicating the item is identified as classified or sensitive. In addition, pilferable codes associated 

with arms and ammunition are also included (codes N and P) in this category. 

C17.3.13.1.1.4. Exceptions:

C17.3.13.1.1.4.1. Time limits do not apply to short shipment and wrong 

item discrepancies discovered upon opening a sealed vendor pack. 

C17.3.13.1.1.4.2. Time limits do not apply to those IUID discrepancies 

that must be reported to ensure the IUID registry and/or owner records are properly maintained. 

C17.3.13.1.1.4.3. Time limits for reporting discrepancies relating to 

contractor warranties are prescribed in individual warranty clauses and/or contracts. Those time limits override 

other time limits specified in this chapter. 

C17.3.13.1.1.5. Late Submission. When circumstances prevent compliance with 

the above time standards, e.g., response to a tracer action reveals a supposed transportation discrepancy to be a 

shipping/packaging discrepancy, the reasons for delay shall be provided in a brief clear-text explanation. If 

appropriate, the responsible activities will honor the discrepancy report. Reporting activities are required to 

send SDRs to report a shipping or packaging discrepancy even after the above submission time standard has 

elapsed. If lacking justification, action activities shall process for use in reporting metrics and corrective action, 

if appropriate. The SoS shall not be responsible for financial resolution on late submission SDRs unless 

shipment history is available and the circumstances warrant such action
Enclosure 1, ADC 488

Page 27

C17.3.13.2. Time Standards for SDR Response. Responsible action activities shall reply to all 

SDRs received within the following time standards. Interim responses shall be provided when extenuating 

circumstances necessitate additional processing time.

C17.3.13.2.1. Discrepant controlled inventory items, arms, arms parts, ammunitions, and 

explosives (shortage/overage/wrong item/misdirected): Total response time, to include sequential processing by 

multiple action activities when necessary, shall not exceed 25 calendar days. Wrong item receipts identified as 

controlled/sensitive and unidentified items shall be returned to the designated location within 30 calendar days 

of the SDR reply. Sources of supply shall monitor for the return and follow-up with the SDR submitter if 

materiel is not returned.

C17.3.13.2.2. Expedited processing is required for transshipper prepared SDRs requiring 

positive action from the action activity (e.g., preparation of MSDS or verification of label/marking information. 

Where forward movement of the shipment is delayed pending a response as indicated by Action Code 3A, the 

response time shall not exceed 5 calendar days.

C17.3.13.2.3. Distribution depots shall respond to SDRs submitted directly to the 

shipping activity within 25 calendar days. Responses from distribution depots may be confirmed or 

superseded/corrected by a later response when Component business rules require sequential processing by the 

source of supply and the finance center.

C17.3.13.2.4. ICP/IMMs shall respond to SDRs submitted directly to the SoS within 50 

calendar days. Where sequential process by distribution depot and ICP/IMM are required, total processing time 

shall not exceed 50 calendar days. 

C17.3.13.2.5. Action activities receiving SDRs inappropriately shall make every effort to 

forward to the correct action activity within 5 calendar days. Customers should be aware that misrouting of 

SDRs may extend total processing time beyond the authorized 50 calendar day processing time.

C17.3.13.3. Transfers of IMM Responsibilities

C17.3.13.3.1. Logistics Reassignment. Under the logistics reassignment procedures, 

IMM responsibility for an item may have been transferred to another DoD Component after the date of 

shipment. In these instances, a single discrepancy reported on a requisition line-item may require action and/or 

reply from two different DoD Components (e.g., shipper's ICP/IMM and gaining item manager (GIM)). For 

example, on receipt of an incorrect item, one DoD Component could be responsible for the investigation 

(shipping activity) and the initiation of a billing adjustment (shipper's ICP/IMM) for the item billed (but not 

received), and the GIM would be responsible for providing disposition instructions for the erroneous materiel.

C17.3.13.3.2. Response Coordination. It is not the responsibility of the SDR initiator to 

forward copies of the SDR to all parties involved. Instead, it shall be the responsibility of the shipping activity 

or losing item manager (LIM) to coordinate with the GIM for an appropriate response/disposition to the 

submitter.

C17.3.14. Contested Decisions for Non-Security Assistance Related Discrepancies. When the SDR 

originator does not concur with a reply/disposition received in response to an SDR, they shall forward the SDR 

indicating a contested decision. Requests for reconsideration pertaining to distribution depot shipments shall be 

forwarded to the shipping depot; all others shall be forwarded to the SoS. Requests for reconsideration must be 
Enclosure 1, ADC 488

Page 28

submitted within 45 calendar days from date of action activity response. Cite the SDR report number of the 

original report. For transactional exchange, SDR applications shall include the WebSDR-assigned control 

number when known. Requests for reconsideration transactions require all data that was in the previous SDR 

submission. In addition, a narrative entry is required to provide justification for reconsideration. POC 

information for the new submission and submission date is required. An SDR must be in a closed status before 

a request for reconsideration can be submitted (this means the action activity reply to the SDR must be recorded 

within the applicable Component application). The designated recipient of the request for reconsideration shall 

review all data relating to the problem and provide a response to the reporting activity with information to all 

concerned parties within 45 calendar days. When the shipping depot is unable to respond to the contested SDR, 

the depot will forward the SDR to the SoS for resolution (when the SDR is forwarded, the 45 calendar days for 

processing and evaluation will begin when the SDR is received by the SoS). The resulting decision shall be 

final.

C17.3.15. Correction and Modification/Update of Original Report. When the originator needs to modify 

discrepancy information or requested action concerning a previously submitted SDR, a new transmission of the 

SDR may be used. Indicate that the SDR is a modification or correction and forward to all parties who received 

the original submission. Cite the nonconformance report number of the original report. SDR applications shall 

include the WebSDR-assigned control number when known. SDR applications shall include revised content 

and the original unchanged discrepancy information from the original report using the DLMS 842A/W. POC 

information applicable to the revised SDR is required. A brief narrative description of the revision must be 

included. Significant errors, such as an incorrect requisition document number or document number suffix

must be corrected by canceling the original SDR and submitting a new report.

C17.3.16. Cancellation of an Original Report. When an SDR originator discovers a previously reported 

SDR is not valid or appropriate for any reason and should be withdrawn, a new SDR cancellation must be 

prepared to cancel the original. Forward to all parties that received the original submission. Cite the original 

report number . SDR applications shall include the WebSDR-assigned control number when known. Do not 

duplicate detail information from the original report except as indicated in the DLMS 842A/W. POC 

information applicable to the cancelled SDR is required. A brief narrative description of the reason for 

cancellation should be included.

C17.3.17. Consignor Replies on Industrial Plant Equipment (IPE) Packaging Deficiencies. Consignor 

(shipper) replies on IPE packaging deficiencies, which DLA Aviation in Richmond, Virginia, has previously 

funded for packaging, crating, and handling (PC&H) will provide necessary documents to transfer or reimburse 

funds for any required corrective action. Handling for PC&H is based on specified requirements for IPE in 

MIL-HDBK-701, Military Standardization Handbook Blocking, Bracing, and Skidding of Industrial Plant 

Equipment, and MIL-STD-107, Military Standard Preparation and Handling of Industrial Plant Equipment.

C17.3.18. Follow-up on Credit Adjustments on SDRs. When an action activity has indicated that a credit 

adjustment has been authorized, reimbursement is normally provided to the fund code and bill-to address cited 

on the original requisition. When concerned about an apparent non-receipt of credit and 60 calendar days has 

elapsed, the SDR submitter should consult the bill-to finance office for verification. When non-receipt of credit 

is confirmed, the financial office shall submit a request for billing adjustment as prescribed by MILSBILLS 

procedures in DLM 4000.25, Volume 4, Finance.

C17.3.19. Materiel Receipt Acknowledgment (MRA). ICPs shall monitor for discrepancies reported on 

MRAs (DLMS 527R) to ensure identified discrepancies have been properly reported.
Enclosure 1, ADC 488

Page 29

C17.3.20. Defense Automatic Addressing System (DAAS) SDR Processing

C17.3.20.1. Under DLMS, SDRs shall be integrated with standard logistics transaction processing 

through DAAS. DLMS transaction formats are available in ASC X12 EDI or EDI-based XML. Guidance for 

transaction content is provided in DLMS Supplements available at www.dla.mil/j6/dlmso/elibrary/transformats/140_997.asp. DoD WebSDR shall perform the following actions:

C17.3.20.1.1. Pass/route SDR transactions.

C17.3.20.1.1.1. Generate and route an information copy of each SDR reporting 

packaging discrepancies associated with Air Force-directed shipments to the Air Force packaging monitoring 

office.

C17.3.20.1.1.2. Route the action copy of SDRs reporting distribution depot receipt of 

PQDR exhibits (Discrepancy Code Q11) to the materiel owner by agreement with DLA. For Air Force owners,

this process shall use an electronic (e-mail-based) interface with the Air Force processing system for product 

quality deficiencies.

C17.3.20.1.1.3. Provide special e-mail routing of the action or distribution copy of 

transshipper prepared SDRs upon Component request.

C17.3.20.1.1.4. Return unroutable transshipper prepared SDRs to the submitter for 

continued processing off-line.3

C17.3.20.1.2. Edit SDR transactions in accordance with business rules specified below. 

Additionally, DoD WebSDR shall edit SDRs to improve data consistency and the appropriateness of data 

content as follows:

C17.3.20.1.2.1. The owner/manager may not be identified by a routing identifier 

associated with a Distribution Depot or a CCP.

C17.3.20.1.2.2. The shipping activity may not be identified by the routing identifier 

associated with an inventory control point or item manager.

C17.3.20.1.2.3. Inappropriate entries will be overlaid with the correct value, if available, 

from DAAS history.4

C17.3.20.1.3. Provide translation capability to the Army User Defined File (UDF) format to 

support Army Web-Based Tool (WBT) SDR application transaction processing pending DLMS 

implementation.

5 No other transactional non-DLMS formats are authorized for SDRs. 

C17.3.20.1.4. Convert SDRs for e-mail distribution where SDR transactions are not feasible 

due to lack of an established SDR application interface.

 3 Refer to ADC 317, Revised Business Rules for Transshipper-Prepared Supply Discrepancy Reports. Implementation delayed. 4 Refer to ADC 425, Revised SDR Codes and Procedures, including Incorrect Part Number Discrepancy Codes and DoD WebSDR 

Data Edits and Forwarding Enhancement. 

5 Refer to ADC 452, Implementation of DOD WebSDR Automated SDR Rejection Capability.
Enclosure 1, ADC 488

Page 30

C17.3.20.1.4.1. Upon determination that an e-mail (vice transaction) is to be prepared for 

a specific SDR communication, DLA Transaction Services will check to determine if the appropriate e-mail 

certificate has been registered. If registered, the SDR e-mail transmission shall be encrypted as FOUO. The email SDR shall contain all associated SDR content as well as clear text addresses and code explanations to 

facilitate interpretation. If not registered, an abridged content SDR report, confirmation, distribution copy, or 

reply, as appropriate, will be prepared. The e-mail sent to the user will also provide information on how to 

access WebSDR and instructions on registering the e-mail certificate.

C17.3.20.1.4.1.1. Abridged SDR. The abridged unencrypted version of the SDR email will include the following data content. Coded information shall not include the corresponding clear-text 

explanation. The submitter and action activities shall not be identified by clear-text addresses.

• DoD Web SDR Report Control Number

• Additional System SDR Control Number

• Customer-Assigned Control Number

• Document Number/Suffix

• Contract Number

• Transportation Control Number

• Date of Preparation

• Document Type Code

• DLA Disposition Services SDR Type Code

• Discrepancy Code(s)

• Action Code

• Submitter (Activity From)

• SDR Point of Contact

o Name

o Commercial Phone or DSN

o E-mail

• Attachment/Off-line Flag

C17.3.20.1.4.1.2. Abridged SDR Reply. The abridged unencrypted version of the 

SDR Reply e-mail shall include the following data content. Coded information shall not include the 

corresponding clear-text explanation with the exception of the Reply Disposition Code which must include text 

for understanding. The submitter and action activities shall not be identified by clear-text addresses.

• DoD WebSDR Report Control Number

• Additional System SDR Control Number(s)

• Original Reference Number

• Document Number/Suffix

• Contract Number

• Transportation Control Number
Enclosure 1, ADC 488

Page 31

• Reply Date

• Document Type Code

• DLA Disposition Services SDR Type Code

• Reply Code(s)

• Action Activity (Activity From)

• Submitter (Activity To)

• Comments/Remarks

• Reply POC

o Name

o Commercial Phone or DSN

o E-Mail

• Attachment/Off-line Flag

C17.3.20.1.4.1.3. Organizations that are not supported by an SDR application for 

transactional reference shall provide to DLA Transaction Services an e-mail address to be linked with their 

DoDAAC/RIC for e-mail distribution.

C17.3.20.1.4.1.4. Each DoD Component shall designate to the DoD SDR System 

Administrator a specific e-mail account or point of contact to receive unroutable SDRs for manual attention. 

This is required to ensure operational support where no SDR application or e-mail address has been identified

for an SDR recipient, or an attempted e-mail distribution has failed due to an invalid address.

C17.3.20.1.5. Maintain historical records of SDRs and associated transactions.

C17.3.20.1.6. Provide access to SDR information via Web Visual Logistics Information 

Processing System (WEBVLIPS). 

C17.3.20.1.7. Provide ad-hoc queries and management reports.

C17.3.20.1.8. Maintain the DoD WebSDR as a value-added service to support submission, 

reply, and other functions related to SDR processing.

C17.3.20.1.9. Convert CCP-generated SDRs for e-mail distribution pending owner/manager 

ability to process electronically.

C17.3.20.1.10. Post for history, but not forward SDR replies to the SDR submitter (i.e., 

distribution depots or CCP) identifying passive RFID or WPM discrepancies based upon addressing to the 

DAAS RIC (SGA). This will suppress unnecessary transmission of SDR transactions where the SDR submitter 

has closed the SDR with no expectation/requirement for a reply under these conditions.6

 6 Refer to ADC 425, Revised SDR Codes and Procedures including Incorrect Part Number Discrepancy Codes and DoD WebSDR 

Data Edits and Forwarding Enhancement, Implementation delayed.
Enclosure 1, ADC 488

Page 32

C17.3.20.2. WebSDR shall edit SDR transactions prior to passing/routing to ensure minimal 

standards of acceptability.

7

 Reject to the generating activity SDR and follow-on transactions that do not meet 

the following conditions:

C17.3.20.2.1. SDR transactions must contain valid values as appropriate to the transaction 

purpose: discrepancy code, action code, and reply code. Reject with Disposition/Status Code (Reply) Code 

915, 916, or 927. 

C17.3.20.2.2. SDR must include materiel identification. Materiel identification may consist of 

the NSN, manufacturer’s part number and manufacturer’s CAGE, or as authorized under DLMS for unique 

business processes (e.g. “mixed” or “unknown” for transshipper SDRs and local catalog identification 

number8

). Where wrong item discrepancies are reported, materiel identification of the wrong item must be 

included. Wrong item received may be identified as previously indicated or by description alone (citing 

“UNKNOWN” as the wrong item part number). Reject with Disposition/Status (Reply) Code 931.

C17.3.20.2.3. SDRs reporting materiel received is not in the correct condition must include 

valid condition codes to identify the received conditions. Only valid condition codes shall be permitted. The 

condition code must be appropriate for the discrepant materiel and associated action activity or source of supply 

(i.e., Supply Condition Code N, V, and T may not be directed to the DLA ICP). Reject with Disposition/Status 

(Reply) Code 928. 

C17.3.20.2.4. SDRs coded to indicate narrative is required must provide applicable narrative. 

Reject with Disposition/Status (Reply) Code 924. 

C17.3.20.2.5. SDRs must include minimal point-of-contact information to include name and 

phone/email. Reject with Disposition/Status (Reply) Code 920 or 921.

C17.3.20.2.6. Only valid DoDAACs and RICs will be permitted. Reject with 

Disposition/Status (Reply) Code 929.

C17.3.20.2.7. Quantity fields will only allow entry of numeric values. Reject with 

Disposition/Status (Reply) Code 917 or 918.

C17.3.20.2.8. SDR replies coded to indicate that a ship-to/mail-to address or additional 

information is associated with the reply, must include the specified additional address or information as 

transaction data fields and must include narrative remarks to reflect the address (due to limited implementation 

of the separate address fields). Reject with Discrepancy Status/Disposition Code (Reply) 924. 

C17.3.20.2.9. SDR follow-ups must comply with follow-up submission timeframes. Followups submitted without allowing sufficient action activity response time will be rejected (see section C17.3.13. 

a minimum of 30 calendar days will apply). Reject with Discrepancy Status/Disposition Code 933 

(implementation pending).

 7 Refer to ADC 452, Implementation of DOD WebSDR Automated SDR Rejection Capability. 8 Refer to ADCs 282, CCP-Originated SDRs including Noncompliant WPM Procedures and Shipment Hold Code; 317, Revised 

Business Rules for Transshipper-Prepared SDRs; and 322, Addition of Local Catalog ID qualifier to Support Requirements for 

Theater Enterprise-Wide Logistics System (TEWLS) Requisitions. Local Catalog ID implementation delayed.
Enclosure 1, ADC 488

Page 33

C17.3.20.2.10. SDR follow-ups and contested SDR/reconsideration requests shall not be 

submitted against cancelled SDRs. Reject with Discrepancy Status/Disposition Code 907.

C17.3.20.2.11. Reply with Discrepancy Status/Disposition Code 504 forwarding action may 

not be used to forward SDRs where incomplete information is available to construct the new forwarded SDR, or 

the SDR is otherwise not suitable for automated forwarding action. Reject with Discrepancy Disposition/Status 

(Reply) Code 935.

C17.3.20.2.12. SDR document numbers and associated suffix codes must conform to 

MILSTRIP standards. A temporary exception is allowed for Air Force maintenance document numbers used 

between the Air Force item manager and the supporting depot. The full document number edit does not apply 

to transshipper SDRs (Document Type W) due to the potential for reporting against the shipment unit rather 

than a specific document number. For these SDRs, the document number must be filled and must be 14 

positions. It may contain a 14 position purchase request number, the first 14 positions of the transportation 

control number, or a constructed document number based upon the DoDAAC of the port submitting the SDR. 

Reject with Discrepancy Status/Disposition Code 910.

C17.3.20.2.13. SDRs must contain valid transaction set purpose codes and document type 

codes as shown in the applicable DLMS Supplement. Reject with Discrepancy Disposition/Status (Reply) Code 

938 and 939, respectively. Submitting system personnel will be notified of invalid transaction set purpose 

codes.

C17.3.20.2.14. SDRs associated with new procurement (Document Type 9 or P) must contain 

the applicable contract number and contractor-assigned shipment number. Reject with Discrepancy 

Disposition/Status (Reply) Code 940.

C17.3.20.2.15. Inter-Component SDR replies citing 200-series reply codes may be used only 

for Security Assistance SDRs. Reject with Discrepancy Disposition/Status (Reply) Code 941.

C17.3.20.2.16. Duplicate SDRs defined as a new submission matching an existing SDR on 

document number/suffix, discrepancy code, and transportation control number (if provided). Reject with 

Discrepancy Disposition/Status (Reply) Code 719. Note: DoD Components may use this code based on 

internal business rules.

C17.3.20.3. WebSDR will edit SDR submissions via DoD WebSDR at the point of entry to improve 

the accuracy of the data content. All of the above criteria apply. In addition, web-specific functionality 

includes:

C17.3.20.3.1. The SDR submission process will be facilitated by the auto-population of data 

content based upon the shipment and cataloging data available to DAAS.

C17.3.20.3.2. Address information will be retrieved based upon DoDAAC and RICs. User 

generated updates to initiator’s address are permitted and will be passed to the receiving system for information, 

but will not impact SDR processing.

C17.3.20.3.3. SDR replies coded to indicate that an address or additional information is 

associated with the reply must include the specified additional address or information. 
Enclosure 1, ADC 488

Page 34

C17.3.20.4. DAAS shall provide the support to SDR transaction exchange to facilitate DLMS 

processes.

C17.3.20.4.1. WebSDR shall facilitate appropriate distribution when the action party receiving 

the initial distribution employs the Distribution/Status (Reply) Code 504 indicating the SDR must be forwarded 

to a new action activity. When the new action activity is a distribution depot, the original SDR will be 

retransmitted to the designated depot. The customer shall receive notification of interim status.

C17.3.20.4.2. WebSDR shall facilitate appropriate distribution when the action party receiving 

the initial distribution employs distribution status codes in the 300 series indicating that the SDR must be sent to 

the SoS for disposition. The SDR reply shall be sent to the designated SoS and to the SDR initiator for 

notification of interim status.

C17.3.20.4.3. WebSDR will respond to DAAS-directed rejected reply transactions indicating 

no matching original report or information copy of the SDR is found in the automated application (Reply Code 

926), by providing an information copy of the original report to the activity which rejected the reply. 

Unmatched requests for an information copy will be returned by DAAS as rejected (Reply Code 926) to the 

sending organization. DAAS will create and forward an information copy of the DLA SoS for all customer 

SDRs based upon the storage site reply where an information copy was not previously provided.

C17.3.20.4.4. WebSDR shall provide information copies of SDRs in accordance with 

Component business rules and as designated by the initiator.

C17.3.20.4.4.1. WebSDR shall ensure DLA Enterprise Business System (EBS) receives 

an information copy of all SDRs routed to a distribution depot for initial action where EBS is the SoS.

C17.3.20.4.4.2. All parties receiving an information copy of the original SDR as

designated by the initiator or by a Component business rule will receive a copy of all changes, cancellation, and 

replies associated with the SDR.

C17.3.20.4.5. WebSDR shall accept and forward supporting documentation associated with 

SDRs using DLMS attachment exchange procedures.

C17.3.20.4.5.1. SDR attachments may be uploaded directly to the DoD WebSDR or 

exchanged electronically in association with the SDR transaction.

C17.3.20.4.5.2. SDR attachments must be referenced/uploaded under a SDR Attachment 

File Name constructed in accordance with DLMS rules. Up to five attachments may be associated with a new 

SDR report and subsequent change, reply, request for reconsideration. Attachments may be submitted with 

follow-up and cancellation transactions for archive, but these will not be forwarded to the action activity.

C17.3.20.6. DoD WebSDR shall restrict the use of inappropriate discrepancy 

status/disposition reply codes in responses to transshipper prepared SDRs.

C17.4. MANAGEMENT EVALUATION

C17.4.1 Purpose. The supply discrepancy reporting program is designed to promote evaluation, 

correction, and improvement of logistics operations. To accomplish this objective, discrepancies as specified in 

this publication must be reported and investigated in accordance with established policies and procedures. DoD 
Enclosure 1, ADC 488

Page 35

Components shall institute SDR quality programs that will include periodic reviews to assess the accuracy and 

quality of work processes applicable to supply discrepancy processing. In addition, DoD Components shall 

require, as a minimum, semi-annual summary reporting to an appropriate headquarters for review and analysis. 

The DoD Components unable to support the full scope of the required data collection under legacy systems 

shall incorporate this reporting requirement under business system modernization efforts. The DoD WebSDR 

management reports and canned queries may be used to supplement internally prepared reports. DoD 

Components and USTRANSCOM shall monitor SDR program performance applicable to transshipper SDRs. 

Data collected must be sufficient to enable monitoring activities to:

C17.4.1.1. Identify trends.

C17.4.1.2. Establish volume and dollar values of SDRs.

C17.4.1.3. Bring management attention to problems with shipping activities as necessary.

C17.4.1.4. Prevent recurrence of discrepancies.

C17.4.1.5. Measure quality and responsiveness of action activities.

C17.4.2. IMM/ICP Summary Reporting. As a minimum, the IMM/ICP and shipping activities must have 

visibility of detail/summary reports that show:

C17.4.2.1. The number of SDRs received during a particular timeframe by shipping activity, dollar 

value, and discrepancy type. Reports will measure compliance with SDR submission timeframes.

C17.4.2.2. The number of SDR responses processed during a particular timeframe by action 

activity, dollar value, and discrepancy type. Reports will show a breakdown of SDR actions taken to include 

dollar value of credit authorized and reshipped materiel. Reports will measure compliance with SDR 

processing timeframes and show age of ongoing investigations.

C17.4.3. Receiving Activity Reporting. As a minimum, the U.S. Government receiving activity and the 

ILCO must have visibility of detail/summary reports that show:

C17.4.3.1. The number of SDRs prepared during a particular timeframe by shipping activity, dollar 

value, and discrepancy type. Reports will measure compliance with SDR submission, processing, and follow 

up timeframes. 

C17.4.3.2. Responses received from the responsible action activity, and dollar values recovered, 

either in the form of reshipped materiel or credit received.

C17.5. SECURITY ASSISTANCE DISCREPANCY REPORTS

C17.5.1. General. This section provides specific procedural guidance relevant to the processing of 

Security Assistance SDRs. Based upon United States of America Letter of Offer and Acceptance (LOA) 

agreements, Security Assistance customers will use SDRs to report all supply, billing/financial, and product 

quality deficiencies/discrepancies associated with Security Assistance shipments. Supply discrepancies are 

identified under paragraph C17.3.2., Reporting Criteria, except as specifically excluded for Security Assistance 

and as supplemented below. In addition to the routine data content, Security Assistance SDRs shall include the 

location of the discrepant materiel (in-country depot, freight forwarder, U.S. Government facility, or contractor 
Enclosure 1, ADC 488

Page 36

facility) and the country that received the discrepant materiel. Security Assistance discrepancy reports below 

dollar limitations contained in the United States of America Department of State LOA controlling the case, or 

any other sales agreement with a Security Assistance purchaser, shall not be accepted by the ILCO for

subsequent processing by the DoD Components or participating Agencies unless a valid justification for the 

submission is also provided. 

C17.5.1.1. All Security Assistance SDRs will be submitted directly to the applicable ILCO for 

initial screening and processing in accordance with this manual and DoD 5105.38-M, SDRs may be forwarded 

via SF 364, Report of Discrepancy, or authorized electronic/automated formats. Incorrect item SDRs must 

provide supporting documentation to include photographs of the wrong item received. 

C17.5.1.2. Acceptable SDRs will be forwarded for further processing to DoD ICP/IMM, shipping 

depot, GSA, or other organization as applicable. ILCOs shall submit SDRs using a DLMS-compliant SDR 

application or, pending full implementation, via direct DoD WebSDR input. Total non-receipt SDRs shall

normally be forwarded directly to the shipping depot. All responses to discrepancy reports shall be returned to 

the ILCO. 

C17.5.1.3. Responding action activities shall provide the SDR reply for Security Assistance SDRs 

using a DLMS-compliant SDR application via DoD WebSDR or, pending full implementation, via direct DoD 

WebSDR input or authorized electronic/automated equivalent format. SDR replies must include, at a minimum, 

the applicable document number, the Security Assistance report number (item 2 of the SF 364), point of contact

information, and pertinent information from the data blocks on the reverse side of the SF 364 or the expanded 

SDR data element code lists (Appendix 3).

C17.5.1.4. The DoD shipping activity will retain paper copies of the Security Assistance shipping 

documentation (signed carrier's receipt and shipping document) at the shipping site for a period of 2 years 

following the shipping date. After this point, the paper records shall be retired to the appropriate Federal 

Records Center for a period of 28 years. The stored records must be segregated by country and the container 

marked accordingly. Billing documentation will be retained by the Military Departments and DoD agencies as 

specified in MILSBILLS procedures and DoD 7000.14-R, Vol. 15, Department of Defense Financial 

Management Regulation (Security Assistance Policy and Procedures).

C17.5.2. Time Standards

C17.5.2.1. Time Standards for SDR Submission by Security Assistance Customers. Discrepancy 

report preparation and submission time by the Security Assistance purchaser is limited to the time standards 

cited in the United States of America Department of State LOA, and amendments thereto, as explained in DoD 

5105.38-M.

C17.5.2.2. Security Assistance customers receiving misdirected shipments or shipments containing 

incorrect items that are identified as classified/sensitive materiel, and/or arms, arms parts, or explosives, must 

report within 24 hours of discovery regardless of dollar value for disposition. Where estimated dollar values are 

unknown or fall below the minimum criteria, report using Action Code 1A, Disposition instructions for 

discrepant materiel requested; financial action not applicable.

C17.5.2.3. ILCOs are permitted 15 calendar days from the time of discrepancy report receipt for 

processing prior to forwarding to the appropriate action activity. Upon return of the SDR response from the 
Enclosure 1, ADC 488

Page 37

action activity, ILCOs are permitted 15 calendar days for processing and forwarding to the Security Assistance

customer.

C17.5.3. Directed Returns

C17.5.3.1. Whenever materiel is directed for return to U.S. custody, the purchasing country will be 

instructed to reship the materiel using the same document number under which the materiel was originally 

shipped. The country will be advised that they must return the materiel to U.S. Government custody within 180 

calendar days from date of approval/instructions. However, the time standard allowed for the return of wrong 

item controlled/sensitive materiel or unidentified materiel is 30 calendar days from date of the ILCO reply. The

ILCO shall monitor directed returns and follow-ups with customers where controlled/sensitive materiel has not 

been returned. In those instances when materiel is to be returned to the United States at U.S. Government

expense, every effort will be made to utilize the DTS for the return movement. Action activities shall provide 

the Service/Agency transportation account code (TAC) chargeable to return the discrepant materiel to the 

appropriate U.S. Government activity or other designated location. In lieu of the TAC, the action activity may 

provide commercial package carrier account information. In addition, the SoS shall provide reimbursement for 

packing, crating, handling for directed returns under MILSBILLS procedures in DLM 4000.25, Volume 4, 

Finance. The SoS shall also provide reimbursement for in-country transportation of the original shipment to the 

Security Assistance customer (when a directed return applies) under procedures prescribed by DoD 5105.38-M, 

as amended. When appropriate, the action activity may direct the submitter to return an exhibit of the 

discrepant materiel. The activity requesting this action will pay for exhibit shipment costs. The exhibit shall be 

returned to U.S. Government custody within 90 calendar days from the date of instructions. Action activities or 

the ILCO shall furnish DD Form 1348-1A for materiel to be returned. A copy of the SDR and DD Form 1348-

1A should be included with returned materiel and annotated as an “SDR RETURN.” Upon evidence of materiel 

being returned, a credit adjustment will be processed for the return of the discrepant materiel if previously 

authorized. This evidence releases the Security Assistance customer of liability for the materiel. 

C17.5.3.2. Discrepant Security Assistance materiel not being returned to the stocks of the 

Department of Defense or GSA, or retained, or sent to disposal by the foreign government at the direction of the 

ILCO, shall be turned in to the nearest U.S. accountable military activity (regardless of the DoD Component 

responsible for the materiel). This is in accordance with the governing regulation serving as the authority for 

the turn-in. The local U.S. military activity shall pick up the materiel up in stock as a gain to inventory and 

determine if materiel is required or is in excess to requirements. If materiel is required, it shall be retained. If 

excess to requirements of the local military activity, the materiel must be reported under Chapter 12.

C17.5.4. Incorrect Items. Incorrect item SDRs are not permitted for authorized substitution, unless the 

substitute item does not meet fit, form, or function standards. DoD Components and GSA follow the policy of 

automatic shipment of an interchangeable item unless the requisition contains an appropriate advice code, in 

accordance with MILSTRIP, limiting the request to a specific item. Similarly, quantities may be adjusted to the 

unit pack quantity, when appropriate, unless restricted by the appropriate advice code in the customer 

requisition. Such adjustments resulting in quantity variance are not reportable as discrepant.

C17.5.5. Non-receipt. When an SDR is initiated for non-receipt, the Security Assistance customer is 

required to provide documentation from the freight forwarder indicating that no materiel has been received on 

the requisition and transportation control numbers that apply. The ILCO shall deny any non-receipt SDRs 

received that do not have this documentation attached. The ILCO shall return these SDRs to the customer as 

incomplete.
Enclosure 1, ADC 488

Page 38

C17.5.6. SDR Follow-Up. When the action activity does not respond to an SDR within the prescribed 

time standard specified in this chapter, the ILCO, acting on behalf of the Security Assistance customer, shall 

submit an SDR follow-up. Prior to submitting a follow-up, the ILCO must first attempt to ascertain the status 

of the SDR using the DoD WebSDR query function. If there is no record of an action activity reply, a followup should be submitted. Follow-ups must be directed to the last identified action activity when the original 

SDR was forwarded by the original recipient. Cite the SDR report number of the original report. For 

transactional exchange, include the WebSDR-assigned control number when known.

C17.5.6.1. Follow-up transactions should include all data that was in the previous SDR submission. 

POC information for the follow-up and the follow-up date are required. A narrative entry is required to provide

clarification for the follow-up.

C17.5.6.2. If no response is received to the follow-up within 30 calendar days, the ILCO may 

contact DLA Distribution for distribution depot shipments or the SoS to request assistance. Off-line 

communication with the action activity is recommended because electronic processing errors may have 

impeded timely response to the SDR and subsequent follow-up. DLA Distribution or the SoS shall ensure that 

a response with disposition or interim status is provided within 30 calendar days.

C17.5.7. Cancellation of an Original Report. When an SDR originator discovers a previously reported 

SDR is not valid or appropriate for any reason and should be withdrawn, an SDR cancellation must be prepared 

to cancel the original. The ILCO via the DoD WebSDR will forward to all parties that received the original 

submission. Cite the original report number and the WebSDR-assigned control number when known. Do not 

duplicate detail information from the original report except as indicated in the DLMS Supplement. Provide 

POC information. A brief narrative description of the reason for cancellation should be included.

C17.5.8. Contested Decisions and Requests for Reconsideration. These procedures allow the report 

originator to voice disagreement with disposition decisions. The Security Assistance purchaser has recourse 

through the ILCO to the ICP/IMM or GSA and, if still not satisfied, to the ILCO's Service focal point.

C17.5.8.1. Requests for Reconsideration 

C17.5.8.1.1. The Security Assistance purchaser may ask the U.S. Government to 

reconsider the disposition for a reported supply discrepancy. Purchasers must send a Request for 

Reconsideration to the ILCO within 45 calendar days from the date of the ILCO final reply to the customer 

concerning disposition, except when materiel/exhibit return to the customer is required subsequent to US 

Government-directed evaluation/testing/repair. This exception is applicable only when the

materiel/exhibit must be re-inspected by the customer to confirm that the reported discrepancy/deficiency has 

been resolved and, therefore, additional transportation time is necessary for the return shipment. Under this 

scenario only, the SA purchaser is authorized up to 90 days from the date of the final ILCO reply to submit 

the Request for Reconsideration to the ILCO. The ILCO shall be responsible for monitoring that requests 

for reconsideration are submitted within the allowable time standards. 

C17.5.8.1.2. The request for reconsideration shall use the nonconformance number 

associated with the original report. When the customers ask for reconsideration, the ILCO shall add a Suffix 

Code R to the SDR number. The ILCO shall convert the request for reconsideration to electronic transmission 

and forward to the appropriate DoD ICP/IMM or GSA action activity for reconsideration within 20 calendar 

days of receiving the request for reconsideration from the customer. If relevant information is not accessible by 

the responsible activity, the ILCO may forward supporting documentation. The designated recipient of the 
Enclosure 1, ADC 488

Page 39

request for reconsideration shall review all data relating to the problem and provide a response to the reporting 

activity with information to all concerned parties within 45 calendar days (90 days for security assistance 

shipments where materiel was returned to country when previous SDR resubmission was closed)9. When the 

shipping depot is unable to respond to the contested SDR, the depot will forward the SDR to the SoS for 

resolution (when the SDR is forwarded, the 45 calendar days for processing and evaluation will begin when the 

SDR is received by the SoS).

C17.5.8.3. Second Request for Reconsideration (Contested Reconsideration Response). 

Security Assistance customers may further contest the ICP/IMM or GSA decision given after the request for 

reconsideration. To do so, the customer must send a written request to the ILCO within 45 calendar days from 

the date of the ILCO reply to the request for reconsideration. The customer must indicate why the ICP/IMM or 

GSA decision is not satisfactory. Cite the nonconformance number on the original SDR. The ILCO shall add a 

Suffix Code C to the report number, which shall be used in all references to the SDR. The ILCO shall convert 

the request to electronic transmission and forward the SDR, with an appropriate advice code, within 20 calendar 

days to the appropriate focal point who shall review all the information and send the ILCO the final decision 

within 50 calendar days from the date of receipt of the ILCO information. A contested reconsideration may 

only be submitted transactionally to DoD WebSDR and will be forwarded to the original action activity(ies). 

Additional distribution may be accomplished manually. Pending full DLMS implementation, contested 

reconsideration requests may be forwarded manually. If relevant information is not accessible by the focal 

point, the ILCO may forward supporting documentation. The ILCO shall ensure all interested parties receive 

the SDR resolution.

C17.5.9. Follow-up on Credit Adjustments on SDRs

C17.5.9.1. When an action activity has indicated that a credit adjustment has been authorized, 

reimbursement is normally provided to the fund code and bill-to address cited on the original requisition. When 

concerned about an apparent non-receipt of credit, the ILCO should consult with the appropriate finance office 

for verification. Allow a minimum of 60 calendar days from the date of the SDR response before initiating a 

follow-up action. To facilitate research of supply and financial records, it is suggested that follow-up action for 

non-receipt of credit associated with the return of discrepant materiel occur within a reasonable period (e.g., not 

longer than 45 calendar days after the ILCO provides the action activity the initial notice with evidence of 

discrepant materiel return).

C17.5.9.2. When non-receipt of credit is confirmed, the ILCO will submit a request for billing 

adjustment as prescribed by MILSBILLS procedures under DLM 4000.25, Volume 4, Finance, using DLMS 

812R (DIC FAE) and Billing Advice Code 26. Do not send a hardcopy of the SDR or reply, as this may create 

duplicate work for the finance centers and may cause improper processing of your request.

C17.5.10. Product Quality. Product quality deficiencies relative to Security Assistance shipments are 

reportable via SDR. If product quality is for latent defect, the However, the Security Assistance customer must 

provide evidence that a receipt inspection was done and the defect could not be detected at that time and that the

defect is present for reasons other than deterioration or damage incurred during storage or handling. Quality 

deficiencies include deficiencies in design, specifications materiel, manufacture, and/or workmanship. The 

submitter must identify by discrepancy code any quality deficiencies (including latent defects) that result in a 

safety hazard. Include the following information in the SDR, as applicable: manufacturer's name; 

contract/purchase order number; date of manufacture, pack, or expiration; lot/batch number; location of 

 9 ADC 430, Timeframe Change for Security Assistance SDR Requests for Reconsideration
Enclosure 1, ADC 488

Page 40

materiel; point of contact information (if other than the preparing official); along with a detailed description of 

the complaint if needed to supplement encoded information. Include the following information in all product 

quality SDR packages, as applicable: In addition, provide photographs, test data, and related documentation. 

When submitting a latent defect discrepancy code on the SDR, the report must include substantiating 

documentation to validate the latent defect such as the applicable test report used to identify the latent defect. 

Latent defects must be submitted to the ILCO with substantiating documentation. Following is a list of 

potentially applicable forms of substantiating documentation:

C17.5.10.1. Receipt tests conducted and test reports (including test equipment model, serial number 

and software version), or documentation of receipt tests not conducted, and justification for tests not conducted.

C17.5.10.2. Subsequent tests conducted and results including test equipment model, serial number, 

and software version along with test readings.

C17.5.10.3. Justification that initial receipt inspection and testing could not have detected the 

deficiency.

C17.5.10.4. Documentation of storage and handling of the item since receipt including type of 

storage.

C17.5.11. Billing Discrepancy. Billing discrepancies reported to the ILCO on a SDR shall be converted 

to the appropriate transaction format per MILSBILLS procedures under DLM 4000.25, Volume 4, Finance, for 

the DLMS 812R (DIC FAE).

C17.5.12. Financial Discrepancy. Financial discrepancies reported to the ILCO on a SDR shall be 

forwarded to DFAS-DE/I for processing.

C17.5.13. Management Evaluation. As a minimum, the ILCO must have visibility of detail/summary 

reports that show:

C17.5.13.1. The number of SDRs received during a particular time standard by customer with 

breakdown by shipping activity showing dollar value and discrepancy type. Reports will measure customer 

compliance with SDR submission time standards and ILCO compliance with SDR processing time standards.

C17.5.13.2. A breakdown of SDR action activity response showing actions taken to include dollar 

value of credit authorized and reshipped materiel. 

C17.5.14. Responsibilities

C17.5.14.1. The ILCO shall:

C17.5.14.1.1. Complete initial SDR screening in accordance with this manual and DoD 

5105.38-M.

C17.5.14.1.2. Review all SDRs received for processing and determine proper course of action 

based on available case history data. Reject discrepancy reports that fail to meet Security Assistance time and 

dollar standards (with exception of those that require disposition instructions for wrong item received or 

misdirected shipments) or do not contain required data, unless such data is readily available, at the ILCO. 

Forward SDRs to the appropriate ICP/IMM, shipping depot, or GSA action activity.
Enclosure 1, ADC 488

Page 41

C17.5.14.1.3. Reject duplicate SDRs, except those that are resubmitted to request 

reconsideration of previous decision.

C17.5.14.1.4. Review all requests for reconsideration that contest a reconsideration decision 

(second request for reconsideration). Reject those requests that lack sufficient justification or were not received 

within the established time standards.

C17.5.14.1.5. Process to the Security Assistance customer initial acknowledgment of receipt 

of SDR replies and/or denials.

C17.5.14.1.6. Report the disposition of SDRs applicable to materiel and services to the DFASDE/I as required in the DoD 7000.14-R, Volume 15.

C17.5.14.1.7. Review SDR replies from action activities for completeness and reject those that 

do not specify necessary information, e.g. disposition instructions for discrepant materiel. Under DLMS

transactional exchange, the ILCO reject transaction may be directed to the action activity to identify 

necessary corrections. After three ILCO reject transactions, the action activity should be contacted off-line

to clarify the issues involved.

C17.5.14.1.8. Maintain records of all Security Assistance-related discrepancy reports to 

completion.

C17.5.15.2. The DoD ICP/IMM, shipping depot, or GSA shall:

C17.5.15.2.1. Review all SDRs received for processing and determine proper course of action 

based on available supply records and the results of investigation.

C17.5.15.2.2. Furnish properly completed SDRs to the ILCO for further processing to the 

Security Assistance customer. The action activity shall cite the appropriate reply code (Appendix 3). 

C17.5.15.2.3. Based upon the validated SDR, request that DFAS authorize adjustment/credit 

in accordance with MILSBILLS procedures under DLM 4000.25, Volume 4, Finance.

C17.5.15.2.4. Provide signed evidence of shipment to the ILCO when non-receipt of materiel 

is involved. If this documentation cannot be provided, appropriate credit is required.

C17.5.15.2.5. Provide documentation that is matched to the quantity shipped for concealed 

shortages. Examples of such documentation are those that contain size, total weight, and cube accepted by the 

carrier. Credit is denied if the documentation, in conjunction with the unit weight, supports shipment of the 

total quantity billed. Otherwise, appropriate credit for the difference is required.
Enclosure 2, ADC 488

Page 1

Enclosure 2, Instructions for Preparation of Standard Form 364

AP4. APPENDIX 4.

INSTRUCTIONS FOR PREPARATION OF STANDARD FORM 364

AP4.1. ORIGINAL REPORT. A hard copy Supply Discrepancy Reports (SDR) shall only be 

used by exception under Chapter 17 guidance. When reported manually via hard copy, the 

following instructions for use of the SF 364, Report of Discrepancy, apply.

AP4.1.1. Indicate whether shipping discrepancy or packaging discrepancy by placing an 

"X" in appropriate boxes at the top of the form.

Item 1 Date of Preparation. Use month, day, and four-position year format for the 

date the reporting activity prepares the SDR (e.g., January 10, 2012).

Item 2 Report Number. Provide the locally assigned report number. For Security 

Assistance shipments, this consists of one alpha character to identify the 

initiating office in-country, four numeric characters for number control, two 

alpha characters for the foreign customer country and three to six alphanumeric 

characters for the master and line item case designator, i.e., A0010-JAKBD/001. For any unnumbered reports received, the International Logistics 

Control Office (ILCO) will assign number x9000 to x9999 and so advise the 

foreign country customer on the receipted copy. Suffix code R added to the 

report number indicates the purchaser has asked for reconsideration of the 

report disposition. Suffix code C added to the report number indicates that the 

purchaser has contested the U.S. Government's decision on a request for 

reconsideration.

Item 3 To. In-the-clear name, address, ZIP code and DoD Activity Address Code 

(DoDAAC) and/or Routing Identifier Code (RIC) (if assigned), and attention 

symbol/code of action activity. The action activity is based upon the origin of 

the shipment. If forwarding to the ICP, the RIC of the ICP is located in

positions 67-69 of the DD Form 1348-1A. If forwarding to the Defense 

Distribution Depot, the RIC of the shipping depot is located in positions 4-6 of 

the DD Form 1348-1A. 

Item 4 From. DoDAAC, name, address and ZIP code of the reporting activity or 

Security Assistance customer (consignee). The in-the-clear address shall be 

entered.

Item 5a Shipper's Name. Enter name, DoDAAC and/or RIC (for DoD activities) or 

commercial and government entity (CAGE) code (if available, for commercial 

contractor facilities), and address of shipper (consignor) when different from 
Enclosure 2, ADC 488

Page 2

Item 3. If applicable, the RIC of the shipping depot is located in positions 4-6 

of the DD Form 1348-1A.

Item 5b Number and Date of Invoice. Applicable to Security Assistance billing 

discrepancies. Enter number and date of vendor's invoice or shipper's bill 

number. Attach copy of invoice to SF 364.

Item 6 Transportation Document. Enter the type of transportation document, 

Transportation Control Number (TCN), Government Bill of Lading (GBL),

Commercial Bill of Lading (CBL), manifest, waybill, insured/certified U.S. 

Postal Service, or transportation control and movement document (TCMD) and 

the identifying number assigned to such document. This is a mandatory entry 

when shipment received was made via traceable means, e.g., GBL, CBL. 

Further for U.S. SDRs, for discrepancies involving shortages, include 

following statement in Item 12--"Shortage has been verified as not being 

transportation related."

Item 7a Shipper's Number. Enter shipment number (when more than one shipment is 

made under a contract or requisition) and contract/contract line item 

number/document number (e.g., contract, purchase order). For Security 

Assistance, also include the shipment date to distinguish multiple shipments 

from a contractor source.

Item 7b Office Administering Contract. Name, address, and ZIP code of the Contract 

Administration Office (CAO) activity that directed/arranged shipment.

Item 8 Requisitioner's Number. Enter the requisitioning activity's number, e.g., 

requisition, purchase request, and suffix code, if applicable. Entry of the 

applicable requisition document number is mandatory in all instances, even 

though a contract/purchase order is involved. Only one document number will 

be included on each SF 364. For U.S. SDRs only, when the original 

requisition number cannot be identified for discrepancies in sealed vendor 

packs, the reporting activity must include a constructed document number. 

When using a constructed document number in an SDR, use block 13 to cite 

the fund code and bill-to/credit-to DoDAAC, if different from that in the 

document number.

Item 9a NSN/Part Number and Nomenclature. If item received is different from item 

shown on shipping documents, or different from item ordered, show each item 

on a separate line. For serial numbered principal items, sets, kits and outfits, 

list the item individual serial number first, followed by the discrepancies 

applicable to that serial number. (Sets, kits and outfits showing an assembly 

order number, the assembly order number should also be listed.)

Item 9b Unit of Issue. Enter unit of issue as billed or indicated on shipping document 

for each item listed in Item 9a.
Enclosure 2, ADC 488

Page 3

Item 9c Quantity Shipped/Billed. Enter quantity of item shipped or billed. When code 

C1 is applicable, enter the quantity and the supply condition code of the item 

when shipped, e.g., 980A as shown on shipping document.

Item 9d Quantity Received. Enter the quantity of item received.

Item 10a Discrepancy Quantity. Enter the discrepant quantity. If code C1 is applicable, 

enter the quantity and the supply condition code of the item received. If total 

quantity received is classified under more than one condition code, enter 

separately each partial quantity so classified, followed by the applicable 

condition code, e.g., 960A, 20F.

Item 10b Discrepancy Unit Price. Enter the unit price as billed or shown on shipping 

document.

Item 10c Discrepancy Total Cost. For shipping discrepancies, enter the total value of 

materiel (10a x 10b). For U.S. SDR packaging deficiencies, enter total cost for 

corrective packaging of all discrepant items. For SDRs reporting both a 

packaging and a shipping discrepancy on the same item, enter on separate lines 

both the total value of the materiel and the total cost for corrective packaging.

Item 10d Discrepancy Code. Nature of the discrepancy using the applicable discrepancy 

code. See Appendix 3 for discrepancy codes that supplements those listed on 

the face of the form. If a condition exists that is not listed, use code Z1 and 

describe discrepancy in Item 12, Remarks. Use up to three discrepancy codes. 

When Discrepancy Code Q1, Product Quality Deficiency, or C2, Expired Shelf 

Life, is applicable, enter the following information under Item 12, Remarks:

1. Manufacturer's name and commercial and government entity (CAGE) code (if available).

2. Contract/purchase order number if not shown in Item 7a.

3. Date manufactured, date cured, date assembled, date packed (apply one as appropriate), 

and expiration date for Type I (nonextendible) shelf-life items and inspection 

or test date for Type II (extendible) shelf-life items. Include the date 

overhauled/rebuilt if pertinent.

4. Lot/batch number.

5. Location of materiel.

6. Name, address, and telephone number of point of contact.

7. Nature of complaint stating in detail why materiel is unsatisfactory.
Enclosure 2, ADC 488

Page 4

Item 11 Action Code. Nature of the action requested identified by action code. See 

Appendix 3 for action codes that supplements those listed on the face of the 

form. 

Item 12 Remarks.

General Conditions. Use for any supplemental information when the combination of 

discrepancy codes and action codes needs clarification; when discrepancies 

need explanation; and when a breakdown of cost to report, in terms of labor 

man-hours and materials, is required. Specific data such as appearance, 

lot/batch number, manufacture/packaging date, inspector number and 

inspection date, probable cause of improper packaging, and suggested 

corrective action should be entered here. Provide photos where it would assist 

in determining the cause/validity of the discrepancy/deficiency.

Packaging Discrepancies Noted at Defense Distribution Depots. To ensure proper billing, 

indicate if the materiel is a major Item, i.e., ships, aircraft, missiles, 

ammunition, vehicles, etc., or secondary item, i.e., any item that supports a 

major item such as reparables, consumables, assemblies, etc. Annotate

projected or actual costs for labor and repackaging materials. If actual, indicate 

the date corrective action was completed.

Information Contact. Include name and communication numbers, e.g., DSN and 

commercial telephone numbers, facsimile number, and e-mail address of the 

person to be contacted for additional information if different from that entered 

in Item 14a.

For Distribution Depots That Mail Hard Copies. Indicate the type of receipt involved, e.g., 

a receipt from procurement, a customer return, or a receipt for the retail supply 

account, etc.

Discrepancies in Sealed Vendor Packs. Enter, if available, the contract number and lot 

number from the item package and the words "concealed discrepancy found 

upon opening sealed vendor pack," or cite the appropriate discrepancy code.

Special conditions. For shortages or nonreceipt of GSA items shipped via U.S. Postal 

Service--cite whether all packages shown as shipped in Item 5 of GSA or DD 

Form 1348-1A were received. For medical materiel requiring refrigeration or 

frozen storage--cite the information requested on the special instruction sheet,

which is included with shipments of such materiel. For classified materiel--

cite whether indications of container tampering were or were not evident; 

indicate whether a security deviation inquiry may be necessary at the origin.

Security Assistance SDRs. Cite the specific violation of specification, regulation, packaging 

instruction, or contract.
Enclosure 2, ADC 488

Page 5

Item 13 Funding and Accounting Data. (Not applicable to Security Assistance SDRs.)

For packaging discrepancies, the accounting/appropriation fund cite may be entered in this 

block by the SDR initiator if reimbursement funds/credits are expected for 

costs incurred to correct reported deficiencies. Use only when a billing 

document such as the SF 1080, Voucher for Transfer Between Appropriation 

and/or Funds, will not be prepared.

When using a constructed document number under authorized SDR procedures and prior 

coordination with the applicable Component finance office (Code U in the 

first position of the constructed document number serial number (DLMS 

Utilization Code U) per MILSBILLS procedures), include fund code and 

credit-to/bill-to DoDAAC, to ensure that credit/billing is appropriate.

Item 14a Typed or Printed Name, Title, and Phone Number of Preparing Official. Selfexplanatory. Include both full commercial, DSN, and facsimile 

communication numbers and e-mail address, if available.

Item 14b Signature. Self-explanatory.

Item 15 Distribution Addressees for Copies. Enter other addressees receiving copies of 

the report. Not applicable to Security Assistance SDRs.

AP4.2 SDR REPLY. The reverse of SF 364 shall be completed by the action activity as 

required by this publication.

Item 16 From. The name, DoDAAC and/or RIC, and address of the activity preparing the 

reply. 

Item 17 Distribution Addressees for Copies. Enter addressees (including DoDAAC and/or 

RIC (if assigned)) receiving copies of the reply in addition to addressee listed in 

Item 18. 

Item 18 To. Enter address (including DoDAAC and/or RIC (if assigned)) of the activity 

indicated in Item 4 on face of the form. For Security Assistance, use the address 

for the appropriate ILCO.

Item 19 Enter action taken by responsible action office by placing an "X" in appropriate 

box(es). Do NOT check box 19f(2) for U.S. SDRs; the regulation(s) citation(s) 

applies only for shipments to Security Assistance customers. Also, see 

instructions for Item 23.

Item 20 Enter disposition instructions by placing an "X" in appropriate box(es). Also, see 

instructions for Item 23.
Enclosure 2, ADC 488

Page 6

Item 21 Enter an "X" to indicate to the reporting activity that a new requisition is required 

if the materiel is still needed. Also, see instructions for Item 23.

Item 22 Enter an "X" to indicate a replacement shipment will be made and the 

approximate shipment date. Also, see instructions for Item 23.

Item 23 Remarks

General Conditions. Enter any clarification or information necessary for a 

complete reply. Enter corrective action taken to preclude future packaging 

discrepancies and/or record the SDR reply code (Appendix 3). This code and 

applicable narrative may be used rather than marking equivalent boxes for Items 

19, 20, and 21. 

Packaging Discrepancies Noted at Distribution Depot. 

The ICP shall annotate the SDR to indicate that DD repackaging is

approved or not approved. If the ICP authorizes corrective action

the SDR will also show the appropriate funding/authorization

document, e.g., job order number, Military Interdepartmental

Purchase Request (MIPR) number, or SF 1080, to which the DD may charge the 

corrective action costs. After completing corrective action, the DD will annotate 

the actual cost of the work performed, note the date completed, and forward a 

copy to the ICP for close-out.

Item 24a Typed or Printed Name and Phone Number of Preparing Official. This is the 

individual authorized to provide an SDR response. Include both DSN and full 

commercial telephone numbers.

Item 24b Signature. Self-explanatory.

Item 24c Date. Use month, day, and four-position year (e.g., January 10, 2012).

AP4.3. SDR FOLLOW-UPS, CORRECTIONS, AND CANCELLATIONS

AP4.3.1. At the top of the original report annotate the appropriate word ("FOLLOW-UP," 

"CORRECTION," or "CANCELLATION") and the date the follow-up, correction, or 

cancellation was prepared and forward to the same distribution addresses as the initial report.

AP4.3.2. Where there is any change to the point of contact information provided in block 

14a of the original SF 364, enter the new point of contact name and telephone number(s) and email address.

AP4.3.3. For corrected or cancelled SDRs, the initiator will explain the clarifying data in detail 

in the "Remarks" block. Include the signature, date, DSN number, complete commercial 

telephone number, and e-mail address, if available, of the person preparing the revised report.
Enclosure 2, ADC 488

Page 7

SF364, Supply Discrepancy Report Form (Front)
Enclosure 2, ADC 488

Page 8

SF364, Supply Discrepancy Report Form (Reverse Side)
Enclosure 3, ADC 488

Page 1

Enclosure 3, Supply Discrepancy Report Relevant Data Elements Code Sets 

Publish new DLM Appendix to DLM 4000.25-M, Volume 2. The appendix number used in this ADC may 

change during the publication process. The wording is derived from the joint guidance enclosures and has been 

updated to contain applicable ADCs.

AP3. APPENDIX 3.

SUPPLY DISCREPANCY REPORT RELEVANT DATA ELEMENTS

AP3.1. GENERAL

AP3.1.1. This appendix provides a consolidated reference resource for data elements and their 

associated code sets applicable to supply discrepancy report (SDR) submissions and responses. These data 

elements are applicable in all DoD SDR applications under the DLMS. The following data elements are 

included in this appendix. Within the context of SDR procedures, these data elements may be recognized by 

abbreviated names as indicated.

• Shipping Packaging and Storage Discrepancy Code. Also referred to as Discrepancy Code.

• SDR Requested Action Code. Also referred to as Action Code.

• Discrepancy Status or Disposition (Reply) Code. Also referred to as Reply Code.

• Discrepancy Report Document Type Code. Also referred to as SDR Document Type.

• DLA Disposition Services SDR Type Code. Also referred to as Disposition Services Sub-Type.

AP3.2. SHIPPING AND PACKAGING DISCREPANCY CODES

AP3.2.1. The following codes are used to provide a description of the discrepant condition. Multiple 

codes may be used on a single report. Customer-prepared SDRs may use up to three discrepancy codes per 

SDR. SDRs associated with Distribution Depot receipts may identify up to two discrepancy codes per SDR. 

Preprinted codes on the face of the SF 364 may be supplemented from this list of codes. Use of the expanded 

list of codes is encouraged to clearly identify the discrepant situation, reduce the reliance on narrative 

descriptions, and facilitate capture of SDR metrics.

DISCREPANCY CODES

Condition of Materiel

C1 In a condition other than shown on supply document or on the supporting inspection/test 

certificate (if hazardous materiel use code H1)

C2 Expired shelf life item (if hazardous materiel use code H5)

C3 Damaged U.S. Postal Service shipment. (Security Assistance customers are authorized to 

use this code for all types of damaged shipments.)

C4 Materiel received stripped of parts or components (cannibalized). Applicable to materiel

returns or repairs only.

C5 Incomplete item received. Do not use for incomplete sets/kits/outfits. See discrepancy 

S9.
Enclosure 3, ADC 488

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DISCREPANCY CODES

Supply Documentation

D1 Supply documentation not received with materiel.

D2 Supply documentation illegible or mutilated.

D3 Supply documentation incomplete, improper, or without authority. Use only when 

receipt cannot be properly processed.

D4 Receiving report/Materiel Inspection and Receiving Report, DD 250 (or equivalent) 

omitted

D5 Transportation-specific documentation discrepancy (select specific detail-level code if 

applicable)

D501 Special Handling Data/Certification, DD Form 1387-2, omitted.

D502 Special Handling Data/Certification, DD Form 1387-2, incomplete or incorrect.

D503 Transportation control and movement document (TCMD), DD Form 1384 or equivalent, 

omitted.

D504 TCMD, DD Form 1384 or equivalent, incomplete or incorrect.

D505 Shipper's Declaration for Dangerous Goods omitted.

D506 Shipper's Declaration for Dangerous Goods incomplete or incorrect.

D601 Hazardous Waste Profile Sheet omitted.

D602 Hazardous Waste Profile Sheet incomplete or incorrect.

D701 Hazardous Waste Manifest omitted.

D702 Hazardous Waste Manifest incomplete or incorrect

Billing and Financial Discrepancies (Security Assistance Only)

B1 Requisitioned materiel received. No record of billing.

B2 Duplicate billing.

B3 Wrong amount billed.

F1 Financial discrepancy involving Security Assistance surcharge.

Hazardous Materiel

H1 Hazardous item in a condition other than shown on supply document or on the supporting 

inspection/test certificate.

H2 Hazardous item in storage damaged or requires repair.

H3 Lack of a material safety data sheet (MSDS) in Hazardous Material Information Resource 

System (HMIRS).

H4 Non-radioactive item classified as radioactive, or non-hazardous item classified as 

hazardous

H5 Expired hazardous shelf life item.

Lumber

L1 Moisture exceeds allowable percentage.

L2 Not treated in accordance with specification.

L3 Product off grade.

L4 Improper size.
Enclosure 3, ADC 488

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DISCREPANCY CODES

L5 Improper tally.

L6 Improper or no grade mark on product.

L7 Rotten product.

L8 Splits, excessive wane, scant, or not end trimmed (one or all).

Misdirected

M1 Materiel improperly addressed and shipped to wrong activity.

Overage, Duplicate, Or Receipt of Canceled Materiel

O1 Quantity received is more than quantity shown on the supply document.

O2 Quantity received is more than quantity requested plus variance, if applicable (other than 

unit of issue or unit of pack).

O3 Quantity duplicates another shipment.

O4 Materiel received after cancellation.

O5 Concealed overage discovered in a sealed shipping container.

O6 Overage due to unit of issue/unit of pack incompatibility. Use only when requisition 

specified no unit of issue/unit of pack variance.

Packaging Discrepancy Codes. Use of four-position packaging discrepancy codes is strongly 

encouraged (pending formal transition to mandatory use). Four-position discrepancy codes 

provide more accurate identification of the discrepancy and are useful in management reports for 

metrics and identification of recurring problems.

P1 Improper preservation

P101 Cleaning inadequate, incorrect, or omitted.

P102 Preservative inadequate, incorrect, or omitted.

P103 Barrier materiel inadequate, incorrect, or omitted.

P104 Unit pack cushioning inadequate, incorrect, or omitted.

P105 Unit container inadequate, incorrect, omitted or oversized.

P106 Desiccant incorrect, improperly located, or omitted.

P107 Tape/closure of unit container incorrect or inadequate.

P108 Hazardous materiels not removed as required.

P109 Improper preservation of hazardous materiels (includes ammunitions/ explosives).

P110 Level of protection excessive or inadequate.

P111 Minimum protection not applied (materiel returns).

P112 Non-conformance to specified requirements for preservation (explanation required).

P113 Electrostatic/electromagnetic device preservation inadequate or omitted.

P114 Concealed preservation defect found in storage (retail only).

P2 Improper packing

P201 Container inadequate, incorrect, or oversized.

P202 Intermediate container inadequate, incorrect, oversized, or omitted.
Enclosure 3, ADC 488

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DISCREPANCY CODES

P203 Exterior container inadequate, incorrect, oversized, or omitted.

P204 Blocking and bracing inadequate, incorrect, or omitted.

P205 Cushioning inadequate, incorrect, or omitted.

P206 Level of protection excessive or inadequate.

P207 Container deteriorated.

P208 Skids incorrect or omitted.

P209 Improper packing of hazardous materiels (includes ammunitions/explosives).

P210 Non-conformance to specified requirements for packing (explanation required).

P211 Improper foam-in-place.

P212 Reusable container not used or improperly prepared.

P213 Closure incorrect or inadequate.

P214 Concealed packing defect found in storage (retail only).

P215 Non-conformance to specified requirements for wood packaging materiel (WPM).

P3 Improper markings

P301 Identification markings omitted, incomplete, incorrectly located, or not legible.

P302 Improper marking of hazardous materiels (includes ammunitions/explosives).

P303 Labels omitted or improperly affixed.

P304 Contract data omitted, incomplete, incorrectly located, or not legible.

P305 Precautionary or handling markings omitted, incomplete, or not legible.

P306 Shelf-life markings omitted, incorrect, or not legible.

P307 Bar code markings omitted, or not legible.

P308 Incorrect lot number.

P309 Set or assembly markings omitted.

P310 Address incorrect or not legible.

P311 Non-conformance to specified requirements for marking (explanation required).

P312 Electrostatic/electromagnetic device markings inadequate or omitted.

P313 Packing list omitted or incorrectly located.

P314 Passive RFID tag is missing.

P315 Passive RFID tag is visibly damaged and unreadable.

P316 Passive RFID tag is present but unreadable (not visibility damaged).

P317 Passive RFID tag read has no corresponding advance shipment notification.

P318 Passive RFID tag read duplicates previously used tag identification.

P319 Military Shipment Label (MSL), DD Form 1387, omitted; no transportation control 

number (TCN).

P320 MSL, DD Form 1387, improperly affixed, incorrect, or incomplete.

P4 Improper unitization (includes palletization and containerization)

P401 Cargo not unitized.

P402 Shrink/stretch wrap inadequate or omitted.

P403 Strapping inadequate or omitted.

P404 Multiple consignees in single consignee consolidation container.
Enclosure 3, ADC 488

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DISCREPANCY CODES

P405 Protective covering/wrapping inadequate, improper, or omitted.

P406 Contents of multipack container inadequately packaged, stuffed or missing unit packs.

Product Quality (Item) Deficiency (Security Assistance Only)

Q1 Product Quality Deficiency

Q2 Quality deficiency, contractual noncompliance.

Q3 Design deficiency, item requires change in design.

Q4 Contracting deficiency, specification, and/or technical data deficient.

Q7 Safety hazard.

Q8 Latent defect.

Quality Deficiency Receipts/Stock Screening (Distribution Depot Only)

Q11 Returned or stock screen item, PDQR exhibit deficiency.

Q22 New procurement receipt, customer return, redistribution order or stock screen item 

quality deficiency, contractual non-compliance.

Q33 Returned, redistribution order, or stock screened item suspected materiel deficiency 

(DLA CRII items only).

Q44 New procurement receipt, customer return, redistribution order or stock screen item 

contracting deficiency, for specification and/or technical data deficiency.

Q55 Item under investigation.

Q66 Customer return or stock screen item failed under use.

Q77 New receipt, customer return, redistribution order to stock screen item identified as a 

critical safety item (CSI).

Q99 New receipt item received for First Article Testing.

Shortage or Nonreceipt

S1 Quantity received less than quantity indicated on supply documentation.

S2 Quantity received is less than quantity requested minus variance, (other than unit of issue 

or unit of pack).

S3 Total nonreceipt of U.S. Postal Service shipment.

S4 Total nonreceipt; not transportation related. (U.S. only)

S5 Total nonreceipt (Security Assistance only).

S6 Shortage due to unit of issue/quantity unit pack unit of pack incompatibility. Use only 

when requisition specified no unit of issue/quantity unit pack unit of pack variance.

S7 Shortage or nonreceipt of an item in a multipack or sealed shipping container.

S8 Concealed shortage discovered upon opening a sealed vendor's pack. Not applicable to 

Security Assistance.

S9 Incomplete sets/kits/outfits. Do not use to report cannibalization of Supply System 

Responsibility Item (SSRI), Components Of End Item (COEI), or Basic Issue Item

(BII). See Discrepancy Code C4.

Technical Markings (Name Plates, Log Books, Operating Handbooks, Special Instructions)

T1 Technical data markings missing.
Enclosure 3, ADC 488

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DISCREPANCY CODES

T2 Technical data markings illegible or mutilated.

T3 Precautionary operational markings missing.

T4 Inspection data missing or incomplete.

T5 Serviceability operating data missing or incomplete.

T6 Warranty data missing.

T7 Missing part number on bare item.

T8 Discrepancy Code discontinued; see W7 and W8.

T9 Operating handbooks, log books, and/or special instructions missing.

Unique Identification

U01 Unique identification data on label missing, damaged or unreadable.

U02 Unique identification data on item missing, damaged or unreadable.

U03 Unique identification data on supply documentation missing, damaged or unreadable.

U04 Unique identification data not provided on shipping notice.

U05 Non-conformance to unique identification requirements under terms of contract.

U06 Multiple containers without separate unique identification data listings.

U07 Mismatch between unique identification data on item and label.

U08 Mismatch between unique identification data on item and shipping documentation.

U09 Mismatch between unique identification data on item and due-in or shipping notice.

U10 Mismatched or unique identification discovered upon opening a sealed pack.

U11 Materiel unidentifiable; stock number missing or damaged.

U12 Duplicate unique identification.

Incorrect Item

W1 Incorrect item received.

W2 Unacceptable substitute received.

W3 Incorrect item received, but not identifiable to an NSN or part number.

W4 Misidentified item received.

W5 Mixed stock received.

W6 Incorrect item discovered upon opening a sealed vendor's pack. Not applicable to 

Security Assistance.

W7 Part number unmatched to FEDLOG/FLIS.

W8 Incorrect part number for NSN received.

Other Discrepancies

Z1 Other discrepancy - see remarks.

Z2 Repetitive discrepancy. Must use in combination with other codes or describe in 

remarks. Not applicable to Security Assistance.

Z3 Distribution Depot receipt not due-in. 

Z4 No record exists for document number cited on supply document. Not used by 

distribution depot/not applicable to Security Assistance.

Z5 Discrepancy under DLA industrial activity support agreement recorded and corrective 
Enclosure 3, ADC 488

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DISCREPANCY CODES

action taken.

Z6 SDR resubmitted following inappropriate cancellation. Must use in combination with 

other discrepancy codes.

Z7 Property not authorized or not acceptable for turn-in to DLA Disposition Services.
Enclosure 3, ADC 488

Page 8

AP3.3 SDR REQUESTED ACTION CODES. The SDR Requested Action Code is used to provide a 

description of the action requested by the initiator of the SDR. This data element may be referred to as the SDR 

Action Code. This is a two position alphanumeric code. Only one action code may be used per SDR under 

DLMS. Preprinted codes on the face of the SF 364 may be supplemented from this list. 

 

SDR Action Codes

1A Disposition instructions for discrepant materiel requested; financial action not applicable.

1B Materiel being retained.

1C Supporting supply documentation requested.

1D Materiel still required; expedite shipment. Not applicable to Security Assistance.

1E Local purchase materiel to be returned at supplier's expense unless disposition instructions to 

the contrary are received within 15 calendar days. Not applicable to Security Assistance or 

DLA customers. 

1F Replacement shipment requested. Not applicable to Security Assistance.

1G Reshipment not required. Item to be re-requisitioned.

1H No action required. Information only.

1Z Other action requested (see remarks).

2A Disposition of materiel and financial adjustment (credit) requested.

2B Materiel being retained. Financial adjustment (debit) requested.

2C Technical documentation/data requested.

2F Materiel being held for disposition instructions, request funds citation. Not applicable to 

Security Assistance.

2J Financial adjustment requested.

2K Evidence of shipment requested (Security Assistance only).

2L Request billing status (Security Assistance only)

2Z Additional information is being submitted off-line. Use with electronic SDR submission only.

3A Transshipper (aerial/water port or CCP) requests expedited response; shipment frustrated.

3B Discrepancy reported for corrective action and trend analysis. No reply required.

3C Receiving activity not authorized to accept property. Pick-up by original owner required. 
Enclosure 3, ADC 488

Page 9

AP3.4 DISCREPANCY STATUS OR DISPOSITION (REPLY) CODES. Action activities use the 

Discrepancy Status or Disposition (Reply) Codes to codify a response to an SDR. This data element may be 

referred to as an SDR Reply Code. It is a three position numeric code. Up to three reply codes may be used on 

a single report to provide complete financial and materiel disposition instructions and provide additional 

information as needed. Codes may be used to replace or supplement preprinted information on the reverse side 

of the SF 364. System design should accommodate clear text for ease of use and interpretation.

Reply Codes

The 100-series codes provide status of financial resolution, materiel disposition instructions, or other 

appropriate information. 

101 Credit authorized/recommended.

102 Credit not authorized. See remarks.

105 Forward materiel received to address shown. Must use traceable and most economical means 

available.

106 Forward materiel received to contractor address shown. Must use traceable and most economical 

means available.

110 Disposal authorized in accordance with local procedures.

111 Disposal authorized, monetary reimbursement from contractor.

112 Disposal authorized, contractor will provide replacement.

113 Provide disposal documentation to address shown.

114 Provide disposal documentation by date indicated to address shown. Credit will be authorized upon 

receipt.

115 Turn in materiel received to DLA Disposition Services Field Office. 

116 Turn in hazardous materiel received to DLA Disposition Services Field Office. MIPR or Bill to 

DoDAAC provided to cover disposal costs.

117 Materiel will be billed if not returned by date indicated.

118 Debit authorized for materiel retained. 

119 Retain materiel received at no charge.

120 Retain materiel with consideration from contractor.

121 Retain materiel without consideration from contractor.

122 Retain materiel for future supply decision. 

123 Materiel will be reshipped (estimated date of replacement shipment provided, when known).

124 Materiel is no longer procurable.

125 Incomplete part/missing component being forwarded.

126 Stock not available or will not be reshipped in response to SDR

127 Contractor to reship.

128 Balance of contract materiel will not be shipped.

129 Reimbursement for repackaging discrepancy cannot be authorized until submitter provides cost for 

repackaging.

130 Place materiel in stock as is.

131 Remark/repackage materiel and place in stock.

132 Inspect and place in depot stock.

133 Upgrade materiel to Condition Code A, correction made by government with reimbursement from 

contractor.
Enclosure 3, ADC 488

Page 10

Reply Codes

134 Upgrade materiel to Condition Code A, correction made by U.S. Government without reimbursement 

from contractor.

135 Documentation/technical data is being forwarded.

136 Confirmed canceled requisition shipped.

137 Additional comments provided. See remarks.

138 Shipment shortage based on pieces, weight, and cube.

139 Warehouse denial total shipment.

140 Warehouse denial partial shipment.

141 Duplicate shipment from stock or procurement.

142 Proof of Delivery/Evidence of Shipment not available.

143 SDR canceled by submitter.

144 Recorded for information only. No action taken.

145 No contractor liability found.

146 Materiel return acknowledged.

147 Corrected shipment document (DD Form 250) provided.

148 Representative will contact you for discussion concerning disposition.

149 Materiel will be picked up in number of days indicated.

150 Your requisition will be reinstated and placed on backorder.

151 Replacement/revised disposition/status; prior response is superseded.

The 200-series codes provide additional information relevant to Security Assistance SDRs.

201 Incorrect information provided by U.S. Government contract.

202 MAPAD information not current by U.S. Government error.

203 Materiel erroneously returned to U.S. Government stock.

204 Overage of Repair and Replace materiel.

205 Shortage of Repair and Replace materiel.

206 Administrative write-off recommended.

207 No financial adjustment required. Excess Defense Articles (EDA). Overage not billed.

208 Repaired in-country by contractor or U.S. Government personnel.

The 300-series codes indicate Distribution Depot status on SDRs forwarded to the owner/manager for 

action.

301 SDR forwarded for disposition by USA as indicated.

302 SDR forwarded for disposition by USAF as indicated.

303 SDR forwarded for disposition by USMC as indicated.

304 SDR forwarded for disposition by USCG as indicated.

305 SDR forwarded for disposition by USN as indicated.

306 SDR forwarded for disposition by GSA as indicated.

307 SDR forwarded for disposition by DLA as indicated.

The 400-series codes indicate the SDR has been closed for the reason provided.

400 SDR closed. Non-compliance with disposition instructions.

401 SDR closed. Non-response to additional information request.

402 SDR closed. Wrong materiel returned.
Enclosure 3, ADC 488

Page 11

Reply Codes

The 500-series (and some 100-series) codes indicate an interim reply.

103 Discrepancy report receipt acknowledgment.

104 Additional clarification required from customer. See remarks.

107 Forward materiel to address shown for inspection/exhibit analysis. Must use traceable and most 

economical means available.

108 Forward materiel to contractor address shown for inspection/exhibit analysis. Must use traceable and 

most economical means available.

501 SDR assigned to Defense Contract Management Agency (DCMA) for investigation.

502 SDR resolution deferred pending receipt of exhibit.

503 SDR currently under investigation.

504 SDR forwarded to new action activity as shown.

505 SDR under investigation. SDR has been forwarded to activity identified for additional action.

506 Item has been transferred to new item manager. Referred to gaining item manager (GIM) for 

disposition.

507 SDR forwarded to shipping depot for Proof of Delivery.

508 SDR forwarded to shipping depot for Evidence of Shipment.

509 SDR forwarded to local procurement office for action.

510 SDR forwarded to Item Manager for research and/or disposition instructions.

511 SDR forwarded to Industrial Operations Command for action.

513 SDR forwarded to IL Directorate or Repair and Return Office for research of R&R case.

514 SDR forwarded to the packaging specialist for research.

515 Procurement/Defense Contract Management Agency awaiting response from contractor. SDR 

suspended.

516 Receipt of materiel returned by customer has not posted to date. Under investigation.

517 Defense Finance and Accounting Service (DFAS) billing information requested.

518 Your SDR identifies a transportation discrepancy and is being processed as a transportation 

discrepancy report (TDR).

519 Your SDR identifies a quality deficiency and is being processed as a product quality deficiency report 

(PQDR).

The 600-series codes indicate an ICP reply to the distribution depot.

601 Change supply condition code and submit as new complaint (original complaint cannot be modified to 

show new supply condition code).

602 Item(s) unsuitable; destroy.

603 Remark and return to stock.

604 Repackage and return to stock.

605 Reidentify and return to stock.

606 Safety hazard; destroy.

607 Safety hazard; dispose.

The 700-series codes indicate SDR rejection:

701 SDR rejected. See remarks.

702 SDR rejected. Materiel shipped as requisitioned.

703 SDR rejected. Overage/shortage is within contract variation clause.

704 SDR rejected. Evidence of shipment/proof of delivery forwarded.
Enclosure 3, ADC 488

Page 12

Reply Codes

705 SDR rejected. Records indicate the inspection or test date or this shelf-life item has been extended to 

date indicated.

706 SDR rejected. Shelf-life not applicable for this item.

707 SDR rejected. Acceptable substitute issued for materiel requisitioned.

708 SDR rejected. Materiel shipped prior to cancellation request.

709 SDR rejected. Discrepant quantity shipped after SDR submission.

710 SDR rejected. Discrepant quantity on backorder.

711 SDR rejected. Materiel shipped via insured/certified/registered mail. Request you contact local postal 

authority to verify delivery of materiel.

712 SDR rejected. Submit offer of materiel under materiel returns program.

713 SDR rejected. Discrepancy does not meet required minimum dollar value.

714 SDR rejected. Billing adjustments may not be requested on a SDR (except Security Assistance). 

Contact local finance office.

715 SDR rejected. Discrepancy not reported within required timeframe.

716 SDR recorded for information and possible corrective action.

717 SDR identifies a carrier discrepancy. Resubmit as a transportation discrepancy report (TDR).10

718 SDR identifies a quality deficiency. Resubmit as a PQDR.11

719 SDR rejected. Duplicate of previously submitted SDR.

The 800-series codes provide additional rejection notices relevant to Security Assistance SDRs: 

800 SDR rejected. No U.S. Government liability.

801 SDR rejected. No billing discrepancy exists.

802 SDR rejected. Bill reflects pre-positioning costs/non-recurring costs.

803 SDR rejected. Bill reflects contract termination charge.

804 SDR rejected. Item proven serviceable when shipped (repair & return, exhibits). 

805 SDR rejected. Freight forwarder tracking system indicates materiel received. Customer should 

challenge freight forwarder.

806 SDR rejected. Repair/adjustment procedures provided by source.

807 SDR rejected. Materiel shipped to address specified on LOA in lieu of country.

808 SDR rejected. SDR does not meet latent defect criteria and is, therefore, beyond the allotted timeframe 

for submission.

809 SDR returned without action. Credit cannot be granted since debit billing has not processed. (ILCO 

use only.)

810 Freight forwarder notification not submitted for total nonreceipt.

The 900-series codes are intended for system/application use in processing transactions. When SDRs are 

processed manually, these codes may be user assigned as appropriate:

901 Transaction rejected. SDR submitted to wrong source of supply. Resubmit to the correct action 

activity.

902 Transaction rejected. Invalid action code for type of discrepancy submitted.

 10 Use of this code is discouraged. Every effort should be made to process the discrepancy report and resolve the situation without 

requiring the initiator to resubmit. See preferred codes 518.

11 Use of this code is discouraged. Every effort should be made to process the discrepancy report and resolve the situation without 

requiring the initiator to resubmit. See preferred codes 519.
Enclosure 3, ADC 488

Page 13

Reply Codes

904 Transaction rejected. Open suffix must be closed before SDR can be reopened.

906 Transaction rejected. Record already closed.

907 Transaction rejected. Record closed, canceled, or a final reply has been provided.

908 Transaction rejected. Record is currently open and cannot be reopened for reconsideration until 

closed.

909 Transaction rejected. SDR must be reopened for reconsideration before it can be contested. 

910 Transaction rejected. Missing or invalid document number (or document number/suffix).

911 Transaction rejected. Missing or invalid case designator.

912 Transaction rejected. Missing or invalid SDR number.

915 Transaction rejected. Missing or invalid type of discrepancy code.

916 Transaction rejected. Missing or invalid action desired code.

917 Transaction rejected. Missing or invalid discrepant quantity.

918 Transaction rejected. Missing or invalid quantity received.

920 Transaction rejected. Missing or invalid point of contact name.

921 Transaction rejected. Missing or invalid point of contact phone number/e-mail.

923 Transaction rejected. Missing or invalid transaction date.

924 Transaction rejected. Narrative missing.

926 Transaction rejected. No record found.

927 Transaction rejected. Missing or invalid disposition/reply code

928 Transaction rejected. Missing or invalid condition code.

929 Transaction rejected. Missing, invalid, or unauthorized use of DoDAAC, MAPAC, or RIC.

930 Transaction rejected. Missing information associated with disposition/reply

931 Transaction rejected. Missing or invalid materiel identification.

932 Transaction rejected. Missing or invalid wrong item information.

933 Transaction rejected. SDR follow-up submitted before action activity response time has elapsed. 

934 Transaction rejected. Forwarding action not authorized. Submit new SDR.

935 Transaction rejected. Forwarding action cannot be processed due to incomplete SDR history. Contact 

originator to resubmit with updated action activity. 

936 Transaction rejected. SDR processing suspended. Request DoD WebSDR provide an information 

copy of the original report. 

937 Transaction rejected. DoD WebSDR unable to provide requested SDR information copy.

938 Transaction rejected. Missing or invalid Transaction Set Purpose Code. 

939 Transaction rejected. Missing, invalid, or inappropriate SDR Document Type Code.

940 Transaction rejected. Missing either contract number or contractor-assigned shipment number on SDR 

associated with vendor shipment.

941 SDR failed during processing. SDR cannot be transmitted electronically to the designated action 

activity.

942 Transaction rejected. Unauthorized use of Reply Code. The 200-series reply codes may only be used 

for Security Assistance SDRs.
Enclosure 3, ADC 488

Page 14

AP3.5 DISCREPANCY REPORT DOCUMENT TYPE CODES 

AP3.5.1. The following codes are used to identify report categories for appropriate automated 

processing. Discrepancy Report Document Type Codes and DLA Disposition Services SDR Type Codes are 

one position alphanumeric codes. 

AP3.5.2. The Discrepancy Report Document Type Code (DLMS Qualifier D) is used on SDRs to 

identify the type of discrepancy report and type of shipment involved. In the context of SDR processing, this 

data element may be referred to as an SDR Document Type; however, there are many other code values 

assigned that are not applicable to SDRs. This data element is mandatory on SDR transactions.

AP3.5.3. The DLA Disposition Services SDR Type Code (DLMS Qualifier ST) is used as a sub-type 

code in conjunction with the SDR Document Type to further clarify the shipment scenario. This data element 

may be referred to as an SDR Sub-Type Code. This data element is conditional; it is used when applicable.

SDR Document Type Codes

Available for DoD WebSDR and Component-Sponsored SDR applications:

6 Customer originated, direct vendor delivery

7 Customer originated, depot/lateral shipment

Restricted Use. Authorized user only:

A Storage Site receipt, customer return/Other

N Storage site receipt, depot shipment (RDO)

P Storage Site receipt, vendor delivery (new procurement)

V Customer originated, lateral shipment under TAV

W Transshipment SDR

Available for Distribution Standard System Originated SDRs only:

8 Depot originated, depot receipt from non-procurement source (other than RDO)

9 Depot originated, vendor delivery to depot

D DLA Disposition Services Field Office originated12

R Depot originated, redistribution order receipt

DLA Disposition Services Document Type Codes

Available for Distribution Standard System Originated SDRs only. Must use in conjunction with 

SDR Document Type Code D:

B Distribution depot shipment to a DLA Disposition Services Field Office

E DLA Disposition Services Field Office Redistribution 

T DLA Disposition Services Field Office Turn-in

 12 SDR Document Type Code D must be used in conjunction with the applicable DLA Disposition Services Document Type Code
Enclosure 3, ADC 488

Page 15

Available for DoD WebSDR only. Restricted Use. Must use in conjunction with SDR Document 

Type Code 7:

D DLA Disposition Services donated materiel

F DLA Disposition Services transferred materiel

O Other DLA Disposition Services shipment

R DLA Disposition Services reutilization

S DLA Disposition Services sale

Restricted. No longer available for new submissions after March 30, 2012:

L DLA Disposition Services DEMIL

P DLA Disposition Services Field Office SDR, depot shipment
Enclosure 4, ADC 488

Page 1

Enclosure 4, Comment Resolution

PDC 506 Comments

Submitter Response Resolution

1. SDDC The SDR System Administrator requested updated 

guidance from Military Surface Deployment and 

Distribution Command (SDDC) to replace the 

obsolete guidance and SDDC address shown in the 

SDR distribution instructions. In response SDDC 

provided the following information:

Personal Property Shipments: Any 

questions/concerns with personal property 

shipments please contact the Military Surface 

Deployment and Distribution Command (SDDC) 

Personal Property at:

USARMY.Scott.SDDC.mbx.omb-for-ppops@mail.mil 

<mailto:USARMY.Scott.SDDC.mbx.omb-for-ppops@mail.mil> 

USARMY.Scott.SDDC.mbx-omb-for-ppquality@mail.mil

Chapter 17 has been updated to exclude 

all personal property shipment 

discrepancies. References to 

submitting SDRs applicable to personal 

property packaging discrepancies have 

been removed. Guidance has been 

updated as follows: Military Personal 

Property Shipments. This category 

includes both shipping and packaging 

discrepancies associated with the 

movement/storage of household goods 

under the DoD Personal Property 

Shipment and Storage Program. Any 

discrepancies related to personal 

property shipment shall be referred to 

Military Surface Deployment and 

Distribution Command (SDDC) 

Personal Property at: 

USARMY.Scott.SDDC.mbx.omb-forpp-ops@mail.mil or 

USARMY.Scott.SDDC.mbx-omb-forpp-quality@mail.mil.

2. Air Force Concur with comments:

The following comments were provided by 

AFSAC:

- Preliminary comments provided as follows: ADC 

change 430 did not get into this version of Ch 17 

(paragraph C17.5.8.1) and this is the most critical 

of the changes below. 

- Secondary is the C17.5.2.2 change because we are 

still getting inconsistency in processing on low 

dollar wrong item/misdirected shipments. I 

unsuccessfully tried to find emails/etc., but there is 

still a lot of confusion as to whether the customer 

gets credit if they are directed or return a low dollar 

value wrong item/misdirected shipment (maybe 

changing this paragraph to 2A rather than 1A 

would help with that confusion).

Noted

- Agree. ADC 430 changes have now 

been posted to this document.

- Noted. This issue needs to be 

addressed through a proposed DLMS 

change which must be made in 

coordination with a SAMM change. 

The procedures as written should be 

updated in light of the intent of the 

original policy. However, the original 

DSCA policy memo is no longer 

effective and, therefore, the SDR 

System Administrator cannot make a 

substantive change to the procedures 

independently (as a result of a 

comment, rather than a coordinated 

PDC). As previously discussed, DLA 

and GSA will provide credit on low 
Enclosure 4, ADC 488

Page 2

PDC 506 Comments

Submitter Response Resolution

1. C17.3.1.3.2 1H requires a response for security 

assistance SDRs. SoS should input reply that they 

have reviewed reply and will take corrective action 

as necessary, check bins for bad items, etc.

2. C17.5.2.2 For Security Assistance, shouldn’t 

this be a 2A since DLA is supposed to issue credit 

for materiel returns regardless of $ value if 

requesting materiel back? 1A says no financial 

adjustment required. I looked all through the 

ADCs and correspondence, and thought that the 

DLMS office had added a statement to say that SA 

customers would be reimbursed transportation and 

provided credit for directed return of wrong item or 

misdirected shipments and couldn’t find it. I don’t 

know if it fell through the cracks or was only issued 

unofficially but it should be stated in this 

regulation.

3. C17.5.8.1 Change implemented by ADC 430 not 

included. This is a critical change that should be 

updated. Sentence 2 should be updated to say:

“Purchasers must send a Request for 

Reconsideration to the ILCO within 45 calendar 

days from the date of the ILCO final reply to the 

customer concerning disposition, except when 

materiel/exhibit return to the customer is required 

subsequent to US Government-directed 

evaluation/testing/repair. This exception is 

applicable only when the materiel/exhibit must be 

re-inspected by the customer to confirm that the 

reported

discrepancy/deficiency has been resolved and, 

therefore, additional transportation time is 

necessary for the return shipment. Under this 

scenario only, the SA purchaser is authorized up to 

90 days from the date of the final ILCO reply to 

submit the Request for Reconsideration to the 

ILCO. The ILCO shall be responsible for 

monitoring that requests for reconsideration are 

submitted within the allowable time standards.”

4. C17.5.8.2 Recommend the paragraph c17.5.8.1 

wording be added here or add to end of sentence 2: 

dollar wrong item shipments and all 

Services/Agencies are supposed to fund 

a directed return regardless of the 

action code. Current DSCA guidance 

prohibits the customer from asking for 

the low dollar credit, and therefore the 

Chapter 17 guidance indicates use of 

the Action Code 1A as appropriate. 

This issue and ensuring proper 

financial action applicable to the 

transportation costs for directed returns 

will require policy and procedure 

guidance that must be addressed 

outside this PDC/ADC document. 

Recommend submission of a DLMS 

change proposal which will be

coordinated with DSCA for SAMM 

update.

1. Do not agree - 1H does not require a 

reply. A PDC would need to be 

submitted to require a reply transaction. 

Current procedures state: “A reply 

transaction from the action activity is 

not required, for Action Codes 1H or 

3B, but when provided, it shall be 

accepted by the customer application.” 

However, note that current procedures 

also require the ICP/IMM, shipping 

depot, or GSA to “review all SDRs 

received for processing and determine 

proper course of action based on 

available supply records and the results 

of investigation. This includes SDRs 

which the customer has reported as 

requiring no action (Action Code 1H or 

3B).”

2. No change at this time.

3. Fixed.

4. Concur. Updated.

5. Concur. Updated.
Enclosure 4, ADC 488

Page 3

PDC 506 Comments

Submitter Response Resolution

(90 days for security assistance shipments where 

materiel was returned to country when previous 

SDR resubmission was closed)

5. C17.5.10: paragraph jumps back and forth 

between a general product quality discrepancy and 

latent defect discrepancy (Q8). Recommend 

sentence 2 be changed to read, “If product quality is 

for latent defect, the Security Assistance customer 

must provide evidence that .....” Also change 

sentence 5 to read “Include the following 

information in all product quality SDR packages, as 

applicable: .....”

6. C17.5.10.3 Add to end in parentheses (latent 

defects)

Additional Air Force comments:

7. C17.1.1. The flow of the very last sentence 

doesn't make sense where it says "effect of 

corrective action". Perhaps change "effect 

corrective" action to read "submit corrective" 

action.

8. C17.1.5. Change the sentence that reads: 

"Discrepancies related to GFP that do not meet 

minimum dollar value criteria below." Add 

reference to the part that reads "criteria below". 

For example: "criteria below (para C17.3.2.8.1.) "

9. AP3.2.1 Remove two postion packaging 

disrepancy codes. This may not happen until 

PDC 176B is completed but just wanted to point it 

out.

9. AP3.2.1 Use of four-position packaging 

discrepancy codes (replacing the two-position nonspecific discrepancy codes) is mandatory A data 

metric that just identifies 80 percent of AF 

packaging discrepancies are due to two-digit 

packaging discrepancy type code (e.g., improper 

packing (P2)) does not really help anyone fix the 

problem. 

"Recommend greater emphasis on utilizing 

only the full four position Packaging Discrepancy 

6. Fixed.

7. Fixed. Now reads: “The purpose 

of the SDR exchange is to determine 

the cause of such discrepancies, effect 

corrective action, and prevent 

recurrence.”

8. Fixed.

9. Noted. Procedures will be updated 

upon approval of the proposed change. 

This change is not yet coordinated.

10. Agree. Following guidance has 

been added: “Use of four-position 

packaging discrepancy codes is 

strongly encouraged (pending formal 

transition to mandatory use). Fourposition discrepancy codes provide 

more accurate identification of the 

discrepancy and are useful in 

management reports for metrics and 

identification of recurring problems.”
Enclosure 4, ADC 488

Page 4

PDC 506 Comments

Submitter Response Resolution

Codes to thoroughly capture the degree

of packaging discrepancies"

3. DLA Concur with comment:

1. C.17.1.3.1 Currently "It encompasses new report 

submission, correction/modification, cancellation, 

follow-up, requests for reconsideration, and 

forwarding of SDR resolution responses, in 

addition to the capture of report and response 

management statistics."

Recommend "It encompasses new report 

submission, correction/modification, interim 

response, additional information request, follow-up, 

reconsideration request, cancellation and 

forwarding of SDR resolution responses, in 

addition to the capture of report and response

management statistics."

2. C17.2.11 is marked in red as being deleted. 

However, it is in the general section C17.1.5 

addressed as GFP. 

• Should C17.2.11 be changed to read GFP 

instead of GFM and be retained?

3. C17.3.2.3.4.2.1. "For items not on the QSL, 

prior to submitting an SDR, contact the DLA call 

center at 

1-877-DLA-CALL if the shipment originated from 

a DLA storage activity." I'm not sure what they are 

contacting the CIC for? Do we need to clarify?

4. C17.3.2.6.6.1. I don't understand how you can 

check SDR status before the SDR is created? "or 

check SDR status in the DoD WebSDR system 

before creating an SDR for total non-receipt."

5. Page 21: "This may be interpreted to mean a two 

separate SDR replies", recommend "to mean two 

separate". Remove "a".

6. Page 23: C17.3.5 – recommend adding language 

that states disposition and financial adjust 

recommendation must come from the TAV 

Noted

1. Agree with intent recommendation 

– slightly different wording used to 

retain original intent which is aligned 

with the major transaction functions 

(versus usage of the transaction):

"It encompasses new report 

submission, correction/ modification, 

cancellation, follow-up, requests for 

reconsideration, and replies (including 

interim responses, additional 

information requests, and resolution 

responses) in addition to the capture of 

report and response management 

statistics."

2. No change required. Terminology 

for GFM revised to GFP under 

MILSTRIP procedures and moved to 

applicability section.

3. No action pending addition 

information.

4. Revised to read: “...or use the DoD 

WebSDR hyperlink to WebVLIPS to

check requisition status before 

creating an SDR for total non-receipt.”

5. Fixed.

6. Agree with intent. Procedures have

been included to state: Coordination 

with the Military Service shipping 

activity is recommended prior to ICP 

resolution of the SDR.

DLA may prefer to submit a DLMS 

change for stronger or more specific 

guidance.

7. Fixed.
Enclosure 4, ADC 488

Page 5

PDC 506 Comments

Submitter Response Resolution

shipping activity and will be included in response. 

I say this because on non-Army TAV shipments 

users are skipping the step of contacting the 

shipping activity for disposition because of the 

issues we have getting responses. Or, if they don’t 

receive a reply they just debit the TAV shipper and 

credit the customer without any authorization. The 

policy should clearly state that coordination must 

be completed and results documented. 

7. C17.3.5.2 - DLA shall be responsible for 

reversing all credits previously paid, issuing debits 

to the requisitioner, and deleting activities from the 

TAV process due to poor performance, in 

coordination with NAMI. 

• Should read “DLA shall be responsible for 

reversing all credit to the TAV shipping 

activity, issuing credit to the 

requisitioner...”

8. C17.3.10.8.2.3. I think this should be 

C17.3.10.8.1.3

9. Page 33 - C17.3.13.1. “This paragraph 

provides...” should be changed to “This section 

provides...”

10. C17.3.13.2 – Recommend adding an appendix 

that shows the applicable CIIC or list like the 

pilferable codes were listed.

11. “Controlled Inventory Item Code (CIIC) code 

indicating” need to remove “code” after (CIIC). 

It’s repeated from before (CIIC).

12. C17.3.13.3. Refers to Discrepant Controlled 

Inventory... After that the time standards for noncontrolled inventory, etc. are given in C17.3.13.3.1 

through C17.3.13.3.4. Recommend the following: 

C17.3.13.4 be used for material other than 

controlled inventory items, arms,.... Use 

C17.3.13.4.1 for CONUS and C17.3.13.4.2 for 

Overseas. Use C17.3.13.5 for Exception. Use 

C17.3.13.6 for Late Submission.

8. Paragraph number fixed prior to 

formal publication.

9. Fixed.

10. Under consideration.

11. Fixed.

12. Agree with intent. Entire section 

has been re-ordered for more logical 

progression.

13. Fixed.

14. Fixed.

15. Fixed.

16. No change required. Both names 

are acceptable. The formal data 

element name is Disposition/Status 

Code (Reply) Code. This element is 

commonly referred to as “reply code.”

17. Agree. Revised.

18. Fixed.

19. Fixed. 

20. Fixed.

21. Agree. Revised.

22. The ILCO rejection process is 

identified under ILCO responsibilities. 

Additional clarification has been added 

due to recent miscommunication 

between AFSAC and DLA. ILCO 

responsibility revised as follows:

“C17.5.14.1.7. Review SDR replies 

from action activities for completeness 

and reject those that do not specify 
Enclosure 4, ADC 488

Page 6

PDC 506 Comments

Submitter Response Resolution

13. Page 34 – C17.3.13.4.3. “Distribution Depots 

shall respond to SDRs submitted directly to the 

submitter within 25 calendar days.” Recommend 

“...submitted directly to the shipping activity...”

14. Page 35 - C17.3.14. the document states 

“DAAS-assigned control number”, then in 

C17.3.15. the document states “the WebSDRassigned control number”. Recommend changing 

“the DAAS-assigned control number” to “the 

WebSDR assigned control number”. This change 

should be made for the entire document. There are 

numerous references to “the DAAS-assigned...”.

15. C17.3.17. – Change “Defense Supply Center 

Richmond” to DLA Aviation

16. Page 39 – “C17.3.20.2.1. SDR transactions 

must contain valid values as appropriate to the 

transaction purpose: discrepancy code, action code, 

and r code. Reject with Disposition/Status Code 

(Reply) Code 915, 916, or 927.” 

• Current policy has “and disposition/status 

code” in highlighted area. Should that be 

added back in or were you changing the 

wording?

17. C17.3.20.2.9. SDR follow-ups must comply 

with follow-up submission timeframes. Follow-ups 

submitted without allowing sufficient action 

activity response time will be rejected (a minimum 

of 30 calendar days will apply). Reject with 

Discrepancy Status/Disposition Code 933 

(implementation pending).

• Recommend changing the highlighted 

statement to “Prescribed time standard 

specified in C17.3.13”. Submitters are 

trying to submit follow-ups at 30 days on 

SDRs that require processing by both the 

DD and ICP and they are getting rejected 

because the 50 day timeframe has not been 

exceeded.

18. Page 41 - C17.3.20.2.16. “...this code based 

internal business rules.” change to “this code based 

necessary information, e.g. disposition 

instructions for discrepant materiel. 

Under DLMS transactional exchange, 

the ILCO reject transaction may be 

directed to the action activity to 

identify necessary corrections. After 

three ILCO reject transactions, the 

action activity should be contacted offline to clarify the issues involved.
Enclosure 4, ADC 488

Page 7

PDC 506 Comments

Submitter Response Resolution

on internal business rules.”

19. Pages 40/41 - C17.3.20.2.10. and 

C17.3.20.2.17. are the same. Recommend 

removing C17.3.20.2.17. (Both say: “SDR followups and contested SDR/reconsideration requests 

shall not be submitted against cancelled SDRs. 

Reject with Discrepancy Status/Disposition Code 

907.”)

20. Page 45 – C17.5.3.1. “US Government”, 

correct spelling of Government

21. C17.5.3.2. “shall take the materiel up in stock” 

recommend “shall pick the materiel up in stock”

22. Page 46 - C17.5.8. Recommend adding 

clarification. There is no mention of the ILCO 

reject transaction. This led to EBS programming 

limiting rejects to one and now requires a system 

change. Also, clarify how many reconsiderations 

are allowed and if they have to be done prior to 

contesting. It is our understanding that 

reconsiderations have to be done prior to 

contesting, is this correct?

4. SDR System 

Administrat

or 

DCMA representatives indicated during discussion 

that SDR distribution rules for vendor shipments 

with packaging discrepancies require clarification 

and update. After review, the SDR Administrator 

agreed stronger wording was needed to clarify 

responsibility for distribution of the SDR 

information copy to ensure that DCMA (or other 

CAO) is provided an information copy when 

applicable. Additionally, the final version

reinstated the guidance for customers to identify the 

CAO from the receiving report and provide an 

information copy.

Staffing Note: 

This original guidance in the DLMS manual read:

SDR DISTRIBUTION FOR PACKAGING 

DISCREPANCIES

 AP3.5.1. Contractor/Vendor Shipments

Guidance reworded as follows: 

C17.3.10.8.1. Contractor/Vendor 

Shipments

 C17.3.10.8.1.1. Initial action to the 

ICP. 

 C17.3.10.8.1.2. Copy to Contract 

Administration Office (CAO). The 

submitter is encouraged to identify the 

applicable Defense Contract 

Management Agency (DCMA) office 

as a distribution copy recipient when 

applicable (see block 10 of DD Form 

250, Material Inspection and 

Receiving Report or comparable 

receiving report). When applicable 

and not identified by the submitter on 

the SDR, the initial action activity 

shall forward the SDR to the DCMA 

or other applicable CAO. When the 
Enclosure 4, ADC 488

Page 8

PDC 506 Comments

Submitter Response Resolution

AP3.5.1.1. Initial action to Administrative 

Contracting Office (ACO). When released by the 

ACO, any required repackaging at Defense 

Distribution Depots must be directed and 

reimbursed by the ICP.

AP3.5.1.2. Copy to applicable Contract 

Administration Office (CAO) (block 10 of DD 

Form 250, Material Inspection and Receiving 

Report). When GSA is CAO, send SDR to GSA 

National Customer Service Center (NCSC).

AP3.5.1.3. Copy to applicable ICP/IMM. 

When GSA is IMM send to GSA NCSC marked: 

IM Copy.

contract is administered by the Service 

or Agency issuing the contract, the 

ICP is responsible for insuring the 

CAO has access to the SDR 

information. 

 C17.3.10.8.2.3. Copy to 

Administrative Contracting Office 

(ACO). The initial action activity 

shall furnish a copy of the SDR to the 

ACO (or otherwise provide visibility), 

if a different organizational entity is 

involved.

 C17.3.10.8.2.4. Copy to Procuring 

Contracting Office (PCO). The initial 

action activity shall furnish a copy of 

the SDR to the PCO (or otherwise 

provide visibility), if a different 

organizational entity is involved.

 C17.3.10.8.2.5. Copy to Component 

Packaging Monitor. SDRs for Air 

Force ICP-directed shipments shall be 

provided to the designated Air Force 

ICP packaging monitor by DoD 

WebSDR under Component-unique 

routing rules.

5. Navy After reviewing PDC506, Navy submits the 

following comments: 

a. Referencing paragraphs C17.3.20.1.4.1.1 

Abridged SDR and C17.3.20.1.4.1.2 Abridged SDR 

Reply, Navy requests that a COG code is added to 

represent Ammunition and Explosive (A&E) SDRs. 

The COG code is the only data element which 

permits segregation of A&E related SDRs from 

SDRs associated with other supply classes. The 

COG in association with the SoS information 

allows Navy to accurately collect data queries 

associated with only A&E and related details. This 

would be a practical method for Navy to comply 

with Management Evaluation of SDRs as addressed 

in paragraph C17.4.1.

b. Referencing paragraphs C17.3.10.2.2 and 

C17.3.10.2.2.1, if Navy has provided funding for 

DLA to provide material and DLA contracts to 

a. No action required. These 

references are to email SDRs. 

However, the Navy no longer uses 

email SDRs, but instead receives SDRs 

by transaction (sent to PDREP) that 

includes the COG code when provided 

by the submitter. The COG can also be 

added by the action activity in the SDR 

reply so that WebSDR will have the 

code available for use in reports (if 

needed). 

b. Refer to ADC 371, Marine Corps 

SDR Distribution Rules and Navy and 

Marine Corps SDR and Storage

Quality Control Report (SQCR) 

Procedures and Data Content under 

BRAC (Staffed as PDC 387A). 
Enclosure 4, ADC 488

Page 9

PDC 506 Comments

Submitter Response Resolution

acquire that material, will DLA be responsible for 

resolving any resulting SDRs?

c. Is Navy to assume that all SDRs that result 

due to a non-compliance or other issues related to 

DLA contracting actions should be responsibility of 

the DLA sponsoring ICP and not a Navy ICP?

d. Reference paragraph C17.3.2.6.8. SDRs for 

Air Force Maintenance Denials Under BRAC 

Supply, Storage and Distribution (SS&D) 

Agreement, is there an opportunity for Navy to also 

have access to those special procedures being 

applied to Air Force material that is requisitioned 

from DLA? 

c. No. Refer to ADC 371. The SDR 

goes to the applicable action activity 

responsible for shipment (DLA gets a 

copy of the report and the reply). 

d. Submission of a proposed DLMS 

change would be required to amend the 

procedures. Suggest coordination with 

DLA BRAC team.

6. Army Army concurs with PDC 506 with the below 

exception for NAMI identification:

C17.3.5 "Army’s Non-Army Managed Items 

Product Support Integration Directorate (NAMIPSID) (RIC AJ2)."

Since NAMI is no longer a PSID, please replace 

with: "Army's Non-Army Managed Items Group, 

Supply Directorate (NAMI Group, RIC AJ2)"

Fixed.

7. USTRANS

COM

USTRANSCOM abstains. Noted.

8. Navy ILCO Financial discrepancies related to FMS 

administrative and accessorial charges are no 

longer sent to DFAS Denver. They are now sent 

to:

Security Assistance Accounting

Customer Accounting Branch

DFAS-IN/JAXBC

8899 E. 56th Street

Indianapolis, IN 46249

Procedures updated to read: Financial 

discrepancies are those discrepancies 

related to administrative and 

accessorial charges. The ILCO, 

ICP/IMM, or GSA shall forward to 

Defense Finance & Accounting 

Service Indianapolis (DFAS-IN), 

Security Assistance Accounting 

Customer Accounting Branch.